* Deficit target means more cuts to come - Cameron
* EU must live within means or face UK veto on budget
BIRMINGHAM, England Oct 7 Britain must find
more spending cuts to reduce the budget deficit, Prime Minister
David Cameron said on Sunday, after a return recession this year
raised speculation the government was set to miss its own
deficit reduction targets.
Cameron, in an interview with the BBC, also said he would
use Britain's veto to scupper European Union budget talks if
necessary, warning the 27-nation bloc it needed to learn to live
within its means.
The prime minister said his Conservative-led coalition
government was determined to stick to its plan to erase what was
a record budget deficit when he came to power in 2010.
Asked if Liberal Democrat Deputy Prime Minister Nick Clegg
was correct to say that whoever won the 2015 election would have
to introduce another tranche of austerity because of the size of
the problem, Cameron said:
"Yes, he is right and actually it happens before that
because we have to find 16 billion pounds of spending reductions
for the year 2015-16. It starts before the general election and
we need to do that," Cameron said.
"I want us to be the party that absolutely levels with the
British public and talks very plainly and straightly about what
needs to be done because the fact is we have to find those
The government delivers new economic and borrowing forecasts
on Dec. 5. Finance minister George Osborne said in an interview
with the Mail on Sunday that Britain faced further cuts after a
weaker than expected performance by the economy this year.
Cameron said Britain had cuts its deficit by a quarter in
two years but it was too early to say what the figures for 2012
would be. Asked whether Britain would have to reduce welfare
spending, he said: "We have to look at things like the welfare
budget... We have capped welfare but we need to go further."
Cameron suggested the EU should at some point split its
budget into two - one for the euro zone and one for the
countries outside the single currency, including Britain.
Cameron, much to the delight of a powerful anti-EU wing of
his Conservative Party, used the veto last year to keep Britain
out of a European fiscal and economic pact aimed at resolving
the euro zone debt crisis.
"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 interest, I don't care how much
pressure you put on, I'm not signing, we are not having it. They
know what I am capable of saying, no, and If I don't get a good
deal I'll say no again.