DAVID Cameron remains on collision course with Brussels after he made clear his intended threat to veto the proposed annual 5%-plus rise for the EU's budget from 2014 to 2020.

Herman van Rompuy, the European Council President, who was in Downing Street yesterday for talks ahead of next month's crunch summit, was said to have recognised the Prime Minister's position.

No 10 was coy about giving details of the exchanges and refused to say whether or not Mr Cameron had in fact used the v-word in the meeting.

"I'm not going to sit here and talk about our negotiating position," insisted the Prime Minister's spokeswoman, stressing, however, that the UK Government's position on the budget had not changed.

Asked if Mr Cameron wanted a deal next month, she replied: "Yes, but he wants it to be the right deal."

MEPs have backed a 6.8% rise in EU spending for 2013 and an overall rise of at least 5% for 2014 to 2020, both due to be agreed before the end of the year. The long-term budget requires unanimity among the 27 member states, giving the UK a veto when national government leaders gather for the special European Council summit next month.

However, the budget for the single year 2013 is decided by qualified majority voting, meaning Britain could be over-ruled.