The government has been defeated in Parliament on the EU budget after 53 Conservative MPs defied their party over the issue.
Labour joined with Martin and other Conservative MP’s to pass an amendment calling for a real-terms cut in spending between 2014 and 2020.
The coalition says the budget must be frozen in real terms as a very minimum.
The amendment, passed by 307 votes to 294, is not binding on ministers, but is a blow to David Cameron's authority on Europe before key talks next month.
The amendment calling for a real-terms reduction in EU spending was passed after a debate in the 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, but Conservative rebels said Parliament would send a clear message and strengthen Mr Cameron's hand if they backed a spending cut.