David Cameron has urged MEPs to back the EU budget cut he secured last week.

The Prime Minister said it would be wrong for EU politicians to block the agreement. The deal was carved out by European leaders but must be approved by the European parliament.

It came as he received a rapturous response from his backbenches as he outlined the budget cut.

One Conservative MP claimed that the move would save every household in the country £150.

But Labour accused the PM of still having more to do. Leader Ed Miliband warned the savings had come at the expenses of investment rather than administration projects.

The cut was not a substitute for a "strategy for growth" across the EU, which would have a direct impact on the UK, he said.

But Mr Cameron reminded Labour that before the talks it had accused him of being "marginalised" within the EU and "picking fights in an empty room".

Mr Miliband teased Mr Cameron that he had voted against a rebel Tory motion in the Commons in October to fight for a real-terms cut to the EU budget.He said: "At a time when so many budgets are being cut at home, this House voted for a real-terms cut last October and was right to do so.

Last week European leaders agreed a £768 billion budget limit for seven years from 2014.