* British PM: EU can still agree budget after talks
* Says "deal can't come at any cost"
* Anti-EU party "at war" with Cameron's party, shuns pact
LONDON, Nov 26 (Reuters) - Britain believes European Union
leaders can still reach a deal to secure a long-term budget
after talks collapsed last week, but spending must be cut by
billions of euros if London is to back the plans, Prime Minister
David Cameron said on Monday.
In comments that will appeal to rebellious anti-EU lawmakers
threatening his authority and voters who see Brussels as a
wasteful "gravy train", he demanded cuts to European officials'
wages, pensions and perks.
"We do believe a deal is still do-able. It is in our
interests to get a deal. But that deal can not come at any
cost," Cameron told parliament after EU leaders failed to agree
the 2014-2020 budget, worth 1 trillion euros ($1.3 trillion).
Cameron has played up support he received from Germany,
Sweden, Finland, the Netherlands and Denmark for his calls to
limit spending, seeking to avoid the isolation and hostility
that often characterises Britain's fraught European relations.
Britain will seek to "galvanise a coalition of like-minded
countries" to curb spending, he added.
Facing a rising tide of anti-EU feeling in Britain, Cameron
is under pressure to control Eurosceptics in his ruling
Conservatives after they sided with the opposition Labour Party
to defeat him in a parliamentary vote seeking EU cuts.
Adrift from Labour in the polls, Conservatives fear rising
support for the UK Independence Party (UKIP), which wants
Britain to leave the EU, could hit them at national elections in
Concerns that UKIP, which has no seats in parliament, could
steal Conservative votes prompted one of Cameron's senior
legislators on Monday to propose an election pact.
Under the plan, Cameron would promise to hold a referendum
on Britain's membership of the EU in return for UKIP not
fielding candidates against Conservatives, also called the
Cameron's office distanced itself from the idea and UKIP
rejected the pact.
"No deals with the Tories: it's war," said UKIP leader Nigel
Farage. His party received 3 percent of the national vote in
However, it finished well ahead of Cameron's pro-European
coalition partner, the Liberal Democrats, in a by-election this
month, taking a 14 percent share.
Cameron received support on his EU position from an
unexpected source - Conservative Mayor of London Boris Johnson.
An outspoken EU critic seen as a possible future challenger
to Cameron, Johnson withdrew his support for a referendum on
whether Britain should stay in the EU or leave.
Cameron, who wants to stay inside the EU, also opposes a
so-called "in/out" vote on Europe and has talked instead of
seeking voters' consent for a new EU role for Britain.
"The Tories are as split today as they've ever been," wrote
Tim Montgomerie, editor of the influential ConservativeHome
website. "Anything less than an in/out vote won't remove the
dagger from the Tory throat that is known as UKIP."