YOU KNOW TRANSNATIONALISM IS DEAD WHEN LABOUR TURNS AGAINST IT:

David Cameron is facing a serious rebellion as Labour and backbench Tories are preparing to gang up against his plans to accept a rise in the EU budget.

Mr Cameron has promised to fight the European Commission's demands for a five per cent increase, which would cost the UK an extra £10 billion over seven years - or £22,000 a minute. The Prime Minister would accept a lower rise of around two per cent in line with inflation.

This pledge is not enough for the eurosceptics, whohave tabled an amendment calling for a cut in the budget, Around 40 are officially planning to rebel and at least a dozen more expected to join them.

Labour sources said the party is planning to vote with the Tory rebels, if a vote on the amendment is allowed to go ahead.

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