Sir- George Osborne has declared victory over the EU and said that he had forced Brussels to halve the UK's £1.7 b.bill. He said he had worked "intensively" to secure "a better deal" for Britain over the budget demand which was levied because of the success of Britain's economy. The UK will now pay £850 m. in two instalments in July and September next year. EU rules have also been changed to ensure that Britain will never again be "ambushed" with an "enormous bill".

Ed Balls, Shadow Chancellor, said that Mr Osborne had "failed to get a better deal" for the taxpayer. Downing Street disputed this adding that a number of European sources had said that the entirety of Britain's rebate was under threat becuase of its refusal to pay this bill by Dec.1.

UKIP commented that Mr Osborne "had taken leave of his senses" if he believed that paying the £850 m. to the EU is a success.

Mats Petersen, director of the Open Europe think-tank believes that Messrs. Osborne and Cameron are trying to take the Brtish people for fools and that ministers had failed to get a better deal . Not a single penny has been saved for the taxpayer.

This encourages me to continue to doubt Mr Cameron's and Mr Osborne's handling of Britain's interests in the EU.

Wendy Hands

Upton-upon-Severn