Proud PM hails victory for Britain as EU cuts its budget for the first time in its history

David Cameron hailed the budget cuts gained from EU leaders as a victory for Britain today.

Emerging from an arduous set of overnight talks the victorious PM celebrated his success at having negotiated a real-terms cut in the European Union's seven year budget.

The Prime Minister secured cuts of £30billion for 2014-2020, making it the first time the EU has cut its spending in its 56-year history.

He said the British public "can be proud" that the credit limit for Brussels spending had been brought down.

Mr Cameron, took part in two days of negotiations and went head-to-head with French President Francois Hollande over the spending cuts.

The cuts are set to save the British taxpayer up to £300million a year.

The PM said: "I think the British public can be proud that we have cut the seven-year credit card limit for the European Union for the first time ever."

Last night, the PM declared the numbers being talked about were "too high" and that EU leaders "needed to come down" otherwise there would not be a deal on the table.

But at 6.30am this morning, the tables had turned and as Germany threw its support behind the PM, France was forced to buckle.

EU leaders joined at the budget talks to discuss the cuts

Summit chairman Herman Van Rompuy earlier took to Twitter to declare a budget deal done.

"Deal done! European Council has agreed on MFF for the rest of the decade. Worth waiting for," he tweeted.

Dalia Grybauskaite, Lithuania's President and former EU budget commissioner during the last seven year Brussels spending round in 2005 said: "For the first time in the EU's history there will be a real budget cut."

The proposed cuts are set to come from the EU's administrative budget

The deal will still need approval from the European Parliament but if approved, it will be a significant victory for the PM who has been criticised over his plan to give Britain a referendum which it has been claimed would reduce the country's influence in Europe.

Martin Schulz, the President of the European Parliament has threatened to use his powers to veto the move.

David Cameron has emerged victorious from the EU summit

He said: "As President of the European Parliament, whose signature is required for the definitive adoption of the budget, I cannot, will not and, indeed, may not accept what amounts to deficit budgets.

"Savings made in the EU budget are savings made in the wrong place, because the EU budget is one of the most powerful sources of investment in Europe."

He also made a pointed comment to Mr Cameron adding that the budget would cover a "time span during which at least one member state had said it may leave the European Union."