Menzies Campbell: 'EU veto was inevitable'

David Cameron has defended his decision to block an EU-wide treaty change to tackle the eurozone crisis, despite warnings it will leave the UK isolated.

It looks likely that all 26 other members of the European Union will instead agree to a new "accord" setting out tougher budget rules.

Labour said the UK would be left out of key decisions affecting its future.

Former Liberal Democrat leader Sir Menzies Campbell said the prime minister had a responsibility to protect Britain's financial services.