Chancellor George Osborne
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George Osborne: We want to see EU budget reduction

1 November 2012 Last updated at 09:52 GMT

Chancellor George Osborne says he will listen to all coalition MPs after the government's defeat in the Commons over the UK's contribution to the European Union budget.

He said the government would only put to MPs any proposed deal which it thought was good for UK taxpayers.

The government was defeated on its proposed freeze of the EU budget on Wednesday after 53 Conservative MPs defied their party line.

Mr Osborne told the BBC's Gary O'Donoghue that everyone wanted to see a reduction in the EU budget.