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The moment the outcome of the vote was announced
Deputy Prime Minister Nick Clegg is to use a speech to attack Labour after it sided with Conservative rebels to inflict a defeat on the government over the EU budget.
The rebel MPs passed an amendment calling for a real-terms cut in EU spending between 2014 and 2020.
Labour described the defeat as a humiliation for David Cameron.
Mr Clegg is expected to say Labour was "dishonest" and "hypocritical" in changing its policy on the issue.
The BBC's political correspondent Robin Brant said that, while Wednesday night's vote was not binding, it was embarrassing for the Tory leader.
It offered fresh evidence that David Cameron was struggling to control his own side and was another show of strength by those wanting big changes to the UK's relationship with the EU, our correspondent added.
Mr Cameron has said that his position is that he would "at best" like to see the budget cut, and "at worst" seek to have it frozen - and that it was in the national interest to negotiate a deal.
Labour criticismIn a speech to be delivered to the Chatham House international affairs think-tank, Mr Clegg will say Labour is well aware there was "absolutely no prospect" of achieving a real-terms cut.
"Their change of heart is dishonest, it's hypocritical. And worst of all, Labour's plan would cost the taxpayer more, not less," he is expected to say.
"Because in pushing a completely unrealistic position on the EU budget - one that is miles away from any other country's position - Labour would have absolutely no hope of getting a budget deal agreed."
- The UK is one of 12 EU members which makes a net contribution to the EU budget - meaning it pays in more than it gets back in EU funding.
- But there are different figures for what the UK's net contribution is depending on how it is calculated.
- The EU financial year runs from January to December. The Treasury says that in 2011 the UK net contribution to the EU budget was £8.1bn. But for the UK financial year, running from April 2010 to March 2011, the Treasury says the contribution was £8.91bn.
- The European Commission has a different figure. In 2011 it says the UK's net contribution was 7.25bn euros (£5.85bn; $9.4bn).
Similar sentiments have been expressed by Foreign Secretary William Hague, who accused Labour of "very cheap politics" by voting for a budget cut after supporting huge increases in EU finances over the last decade.
In his speech later, Mr Clegg will go on to say: "We've been waiting for years for the Labour Party to finally announce how they would cut spending.
"Now they have finally come out in favour of cuts but in a way they know is undeliverable, and in a way that would hurt British taxpayers. And it turns out even their cuts cost money."
He will also say that the Tory rebels have "absolutely no hope" of achieving their goal of forcing the EU to cut spending.
The budget amendment, passed by 307 votes to 294, comes ahead of key talks next month.
The defeat, the most significant since the coalition came to power in May 2010, came despite efforts by ministers to woo rebels and Mr Cameron earlier saying he would veto any budget deal that was not good for Britain.
The rebel amendment was passed after a stormy debate in Commons on the 27-member union's next seven-year budget and UK contributions.
The European Commission's proposed budget for 2014-2020 would see a 5% increase in spending on the current seven-year period.
Government supporters said it would be "nigh on impossible" to negotiate a budget reduction given the lack of support among other EU nations and urged MPs to back Mr Cameron's call for an inflation-linked rise as the minimum acceptable outcome.
But Conservative rebels said Parliament had sent a clear message and strengthened Mr Cameron's hand by backing a spending cut.
'National interest'Former Conservative minister Sir Tony Baldry told Radio 4's Today programme said: "If colleagues want the Conservative Party to be in government after the next general election then we're going to have to start supporting the prime minister when he goes to negotiate on behalf of Britain."
He said electors "do not vote for parties that they see as being divided", adding the only people who were "chuckling" as a result of the rebellion were Labour leader Ed Miliband and his party.
But Sarah Woolastan MP, who was among the Conservative rebels, said her party was "absolutely united on Europe" and Mr Cameron had been given a mandate to push for a "real cut".
"I don't know a single Conservative MP who wanted to see an increase in our contributions by £300m a year, because that's what we mean by a real terms freeze. It's still, in fact, an increase from us."
She said the vote was "about saying to the prime minister 'when you go into those negotiations, the country wants to see Europe get real'". She said she has "full confidence that our prime minister will deliver the very best deal he can".
Meanwhile, Foreign Secretary William Hague said ministers would "take notice" of Parliament's views, which reflected the "real concern" among MPs and the public about the size of the UK's financial contribution to the EU.
Shadow chancellor Ed Balls said there had been cross-party support for the idea of reducing EU expenditure at a time of austerity at home.
"It is not about party politics, it is about the national interest. Parliament has spoken and David Cameron has got to listen and deliver."
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