Video: PMQs: David Cameron says he's prepared to use veto on EU budget The EU's funding package for the next seven years is due to be decided at a summit next month, with Mr Cameron threatening to veto any increase above inflation - currently around two per cent. With the prospect of defeat in the key vote in the House of Commons later, Mr Cameron was given an enthusiastic reception by Tory loyalists as he spoke at Prime Minister's Questions. He said: "This Government is taking the toughest line in these budget negotiations of any government since we joined the European Union. At best we would like it cut, at worst frozen, and I'm quite prepared to use the veto if we don't get a deal which is good for Britain. But let's be clear - it is in our interest to try to get a deal because a seven-year freeze would keep our bills down compared to annual budgets.