Philip Hammond on EU referendum, defence budget and cuts
13 May 2013 Last updated at 11:52 BST
The European Union "is going to change" said Philip Hammond, but the question was whether that would satisfy the needs of the British people.
The defence secretary spoke to Andrew Neil after Michael Gove spoke about a bid by Tory backbenchers for an EU referendum, and claims of how Nick Clegg was appeasing Liberal Democrats.
They also talked about defence funding and cuts and how health and education services would be funded for servicemen and their families.
Mr Hammond also outlined how he planned to boost the number of reservists and pay smaller firms to encourage them to allow workers to join up.
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