Cameron to defend Budget plans in Obama talks

British Prime Minister David Cameron will today defend his decision to slash government spending as he meets US President Barack Obama for one-on-one talks on the fringe of the G8 summit in Canada.

The gathering of global leaders has been marked by a transatlantic spat over the economy, with Mr Obama urging continued fiscal stimulus to avoid the risk of renewed recession, while Europeans - led by Cameron - argue that the time has come for austerity measures to cut borrowing.