John Kerry, who has been officially sworn in as the new US Secretary of State, said America would "do what was necessary" to stand up to "extremism, terrorism, chaos and evil".
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David Cameron said the measure, which will save £4 million by 2020, showed a commitment to his "all in this together" approach.
The party has dropped its opposition to an in/out referendum on EU membership and now supports a vote, acting leader Harriet Harman said.