Clegg turns on Cameron in EU spat over 'false promise wrapped in a Union Jack' A damaging new Coalition split opened today as Nick Clegg attacked David Cameron's ambition to repatriate powers from the European Union as a "false promise wrapped in a Union Jack." The Deputy Prime Minister was speaking after last night's Commons vote in which Tory rebels joined forces with Labour MPs to defeat the Government and demand a real-terms cut in the EU's budget in 2014-2020. In that vote the Tory and Liberal Democrat leaderships saw eye-to-eye, arguing that a freeze in Brussels" spending was the most that the UK Government could expect in the negotiations. But Mr Clegg dramatically spelt out the differences between the Coalition partners at a speech in London today. The Prime Minister has signalled his desire to repatriate some powers from the Europe - for example over employment laws - in the negotiations expected within the next two years on a fresh EU treaty. But his Liberal Democrat deputy said: "I want to focus on the proposal doing the rounds that the best way to improve the UK's position in Europe is to renegotiate the terms of our relationship with the rest of the EU. But, look a little closer, because a grand, unilateral repatriation of powers might sound appealing but in reality, it is a false promise, wrapped in a Union Jack. Mr Cameron's spokesman responded: "I don't think it's news to anyone that the Prime Minister and the Deputy Prime Minister, the Conservatives and the Liberal Democrat party, have slightly different positions on Europe" The Chancellor, George Osborne, tried to soothe the Conservative rank and file today following the rebellion by 53 of the party's MPs. He admitted their frustrations were "understandable" and reiterated that Mr Cameron would strike a deal on EU spending only if it was "good for the British taxpayer." Mr Osborne declined to say whether he believed a real-terms cut was possible. But he said: "We are going into these negotiations with a tougher position than any British government before us. It is the beginning of a negotiation. Let's see where that negotiation leads. But Mr Clegg sounded a tougher note, flatly dismissing the possibility that a real-terms cut could be achieved. He said in an ideal world he would prefer a reduction in the budget, but the Government could not wave a "magic wand." He added: "I'm the Deputy Prime Minister of a Government that's unfortunately had to cut 20 per cent of the policing budget. Of course, I would like to see less money go to the EU budget.