David Cameron has paved the way for hundreds of millions of pounds from Britain's aid budget to be diverted to defence.
The Prime Minister hinted that the money could be spent on peacekeeping operations instead as he tried to placate some backbenchers who are angry at how much the country spends.
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In an embarrassing setback for the president, Republicans failed to reach the number of votes to pass his new healthcare act into law.
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Some of Britain's biggest stars of the stage and screen will be honoured at Buckingham Palace later today.