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Cameron: This is not an acceptable way to run the EU

Asked by ITV News Europe Editor James Mates if Britain would pay the suprise £1.7bn EU surcharge now or later, David Cameron said it was "not happening".

"I want to see proper meetings take place, emergency talks to happen," he said.

"Two billion euros - that is bigger than a lot of countries' gross contributions.

"It is not not an acceptable way to run this organisation."

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David Cameron: I am not paying that EU bill

A visibly angered David Cameron told a press conference today that he simply would not pay the surprise £1.7bn surcharge handed to Britain by the EU.

"It is not acceptable. It is an appalling way to behave," he said.

"I am not paying that bill on December 1st and if people think I'm going to they've got another thing coming. It is not going to happen."

Inclusion of sex and drugs results in extra EU charge

The EU surcharge - which would add almost a fifth to the UK's annual contribution of £8.6 billion - is intended to reflect Britain's better-than-expected economic performance relative to other EU states.

It results from an EU recalculation of national incomes dating back to 1995 and taking into account recent changes in the rules to include economic activities such as prostitution and illegal drugs.

The inclusion of black market activities such as prostitution in EU calculations has resulted in an extra bill for Britain. Credit: DPA

It is understood that British officials did not learn about the demand until last week.

Osborne: I don't accept there is no 'feel good factor'

George Osborne has dismissed the suggestion that there is no "feel good factor" in the UK because living standards have stagnated since the Government took office.

"I simple don't accept that," the Chancellor told ITV News Economic Editor Richard Edgar.

He added that today's growth in GDP means "more economic security, it means more jobs, it means a brighter future".

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George Osborne: 'Critical' time for the UK economy

Chancellor George Osborne says the UK is at a "critical moment", with the economy facing the dual threat of a slowing eurozone and instability in global markets.

He claimed failing to follow through with the Government's economic policies would see a return to the "chaos and instability of the past".

Ed Balls: GDP figures show a 'concerning slowdown'

Shadow Chancellor Ed Balls says today's GDP figures show a "concerning slowdown" in the economy.

He also claimed several areas of the economy were performing poorly.

Shadow Chancellor Ed Balls. Credit: Stefan Rousseau/PA Wire

“For all George Osborne's claims that the economy is fixed most people are still not feeling the recovery. Working people are over £1600 a year worse off since 2010 and these figures now show a concerning slowdown in economic growth too.

“Under this government house building is it at its lowest level since the 1920s, business investment is lagging behind our competitors and exports are way off target," Mr Balls added.

Farage: Cameron 'in real political trouble' over EU budget

Nigel Farage said an increased EU budget contribution is "outrageous". Credit: PA

Ukip leader Nigel Farage said:

David Cameron once claimed that he had reduced the EU budget - but the UK contribution went up - and now, quite incredibly, our contribution goes up a second time. It's just outrageous.

The EU is like a thirsty vampire feasting on UK taxpayers' blood. We need to protect the innocent victims, who are us.

– Nigel Farage

Mr Farage told the Press Association that Mr Cameron is in "real political trouble".

Yes, it's outrageous, but that's how the European Union works.

He's in a very weak position. He can do nothing about this.

And I think, really, he's now being pushed into a position where, unless he brings forward his referendum promise, I think he's in real political trouble.

– Nigel Farage
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