George Osborne defends claim over EU budget

George Osborne has defended his claim that the UK's £1.7bn EU budget surcharge had been halved, after he was accused of "smoke and mirrors".

The UK will pay £850m in two interest-free sums next year, instead of £1.7bn by 1 December, after an EU rebate due in 2016 was apparently brought forward.

The chancellor said there had been "real doubt" that the rebate would apply to the surcharge.

Labour's Ed Balls said the deal had not saved UK taxpayers "a single penny".

Chris Mason reports.