David Cameron
British Prime Minister David Cameron

British Prime Minister David Cameron has said he is prepared to use his country's power of veto to block the EU budget plan for the next seven years, if EU leaders are not ready to cut spending.

Britain last used its veto to block the EU's fiscal plan in December 2011.

"If it comes to saying 'no' to a deal that isn't right for Britain, I'll say 'no'," Cameron said in an interview with the Sunday Telegraph, on the eve of the Conservative Party's annual conference in Birmingham.

Cameron said he is ready to tread an unpopular path to safeguard the UK's economy and interests, even if it means suggesting a two-tier eurozone. He also set out his "bold thinking" on the EU having two separate budgets - one for the 17 nations in the eurozone and another for the ten countries, including Britain, that are outside the single currency.

On the domestic front, the prime minister said that explaining the government's programmes and policies were just as important as actually governing.

"You spend a lot of time governing and deciding, and you don't spend enough time explaining. And I think conference week is a real opportunity to get out there and explain."

Recently, the Conservative-led coalition government came under fire for errors in the rail franchise bidding process which resulted in the scrapping of the West Coast rail line contract issued to FirstGroup.

Meanwhile, Mayor Boris Johnson accused Cameron of leading the country to "economic catastrophe" by delaying a decision on airport capacity in the southeast of England.

"He will always speak his mind. There is no point in trying to contain Boris," Cameron responded.

Cameron is expected to make a number of announcements during conference week in an attempt to reach out to the financially straitened British public. These are expected to include a freeze on council tax bills for another year and a cap on some rail fare hikes.