EU budget deal agreed

David Cameron today hailed a real-terms cut in the European Union's next seven-year budget.

After hours of tortuous negotiations over the past two days, the latest EU summit broke up with an agreement that spending for 2014/2020 would be 908 billion euros (£773 billion).

ITV News Europe Editor James Mates reports:

Read: It took two summits, but the EU now has a budget

The Deputy Prime Minister hailed the new EU budget as the "right deal" for Britain:

Tory backbencher Mark Pritchard said pressure from Eurosceptics in the House of Commons helped the Prime Minister secure an EU budget reduction in Brussels.

Members of the shadow cabinet welcomed news that a deal has been done in Brussels to cut the European Union's long-term budget.

The Shadow Chancellor Ed Balls said:

The Shadow Foreign Secretary Douglas Alexander said:

David Cameron said the new budget agreed by European Union leaders was "a good deal for Britain".

"The best way to protect the British taxpayer is to get overall spending down, which we've done. Our contributions were always going to go up, now they'll go up by less," said the Prime Minister.

"I think the British public can be proud that we have cut the seven-year credit card limit for the European Union for the first time ever."

David Cameron said he had succeeded in reducing the EU budget after leaders agreed on a new deal of €908 billion, or £773 billion, for the next seven years.

"Effectively I have slashed 24 billion euros off a real freeze on the last budget," the Prime Minister told reporters in Brussels.