The Deputy Prime Minister Nick Clegg haslaunched a robust attack on Labour calling some of its members' stance on the EU budget "dishonest" and "hypocritical".
He said the Government has been consistent in its belief that "we cannot support a real increase in EU spend".
Britain was taking the "toughest negotiating stance of any EU state" but that a cut to the budget was not achievable, he said.
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After Roy Hodgson's resignation following England's humiliating exit from Euro 2016, who are the leading contenders to replace him?
The beleaguered Labour Party leader is clinging onto power in the face of as many as 150 MPs voting to remove him from the top job today.
Mr Osborne said he is "not the person to provide the unity my party needs".