George Osborne: EU £1.7bn cash demand on UK 'unacceptable'

Chancellor George Osborne has described as "totally unacceptable" the European Commission's demand for the UK to pay an extra £1.7bn pounds to the EU by December.

The amount is based on a calculation of how well the economies of member states have fared since 1995.

Other countries, including France and Germany, will receive a rebate under the system.

Mr Osborne said the request had come with no warning, and underlined the fact that the EU was not working as it should.