A NEW French challenge to Britain's multi-billion pound a year EU budget rebate has been firmly rebuffed by North West Labour MEP Gary Titley.

Mr Titley, Leader of the British Labour MEPs in the European Parliament spoke out in Strasbourg after French President Jacques Chirac challenged Britain's EU budget rebate.

"If reform of the EU's farm budget goes ahead as planned, the distortions which led to excessive UK payments may be corrected. And the need for Britain's budget rebate may become a thing of the past."

The UK's Budget rebate was originally designed to compensate Britain for excessive payments under the EU's Common Agriculture Policy.

Mr Titley added that if the French was so concerned about Britain's' budget rebate they should lead the battle for CAP reform rather than block it at every turn.