The Prime Minister's spokeswoman said David Cameron does believe a deal can be reached on the European Union budget, due to be discussed during a summit this Thursday in Brussels. The spokeswoman said:
We're in negotiations in the run up to the European Council. We think we can agree a deal. The Prime Minister believes we can work through these details to get the right deal at this week's summit and we are ready to do that.
Mr Cameron has called for a real terms freeze for the 2014-2020 budget, and has threatened to use Britain's veto to stop any agreement that is "not in the interests of British taxpayers."
The spokeswoman said the Government was still seeking "at best a cut, at worst a freeze" in the budget.
More top news
HSBC has reported a 10% rise in profits for the first half of the year - boosted by bumper profits in Hong Kong.
Barnado's has received £3 million to tackle child sex abuse in Rotherham, nearly a year after the Jay Report was released.
Lord Sugar has told Katie Hopkins to "shut up" after the ex-Apprentice contestant criticised celebrities who paid tribute to Cilla Black.