By Daniel Hunter

In an interview with the BBC, Prime Minister David Cameron has said that he would veto any move for a new European Union budget.

The EU is beginning negotiations on its next budget for 2014 to 2020, and Mr Cameron said that in the longer term the EU should have two different budgets - one for countries in the eurozone and one for those outside the single currency.

Speaking on the Andrew Marr show, on the first day of the Conservative Party conference, Mr Cameron said experience showed that "people in Europe know I mean what I say".

"I sat round that table - 27 countries, 26 of them signing up to a treaty and I said, 'This is not in Britain's interests, I don't care how much pressure you put on, I'm not signing, we're not having it.'

"They know I'm capable of saying no and if I don't get a good deal I'll say no again."

The prime minister said the EU budget was a "classic example of where we should probably start to draw new lines".

"There will come a time I believe where you're going to need to have two European budgets - one for the single currency, because they're going to have to support each other much more, and perhaps a wider budget for everybody else."

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