UK "not contacted" over threat to cancel EU summit

Britain has not received any communication from Germany about the possibility of cancelling an EU summit on the bloc's long-term budget scheduled for next month, Prime Minister David Cameron's spokesman said on Monday.

"They haven't, no, they haven't said anything," he told reporters, adding that Britain did not see the case for increases in spending above the rate of inflation.

"The prime minister set out his position on the budget on Friday in his press conference. He's made it clear he's willing to do a deal on the budget in November, so long as that is the right deal for British taxpayers," the spokesman added.

The German government also rejected on Monday a report in the Financial Times which said Chancellor Angela Merkel may threaten to cancel the summit unless Britain shifts its stance.

(Reporting by Mohammed Abbas; editing by Steve Addison)