Britain yesterday proposed €24bn ($28bn, £16bn) of cuts to the draft European Union budget in a compromise package that diverts billions of euros from poorer eastern European countries to the UK Treasury.

The 2007-2013 budget plan by the British EU presidency was described as "cynical" by French diplomats and "unacceptable" by José Manuel Barroso, European Commission president. But some EU diplomats believe it could form the basis of a deal at next week's European summit in Brussels, and Jack Straw, British foreign secretary, insisted: "These are good proposals for the UK and good proposals for Europe."