David Cameron today urged Cabinet ministers to take "brave decisions" in the face of political pressures as spending cuts bite.
Chairing the first weekly meeting since the Commons summer break ended, he declared: "This is the time the rubber hits the road."
He said they would have to withstand "significant challenges" to their economic measures as well as political reforms.
Tory rebels against the Bill to change the election system said they would seek to derail it later in the session. MPs backed legislation to change constituency sizes and hold a referendum on a new voting system by 328 votes to 269, with 10 Tories rebelling.
The Prime Minister and deputy premier Nick Clegg gave pep talks. Mr Cameron said the spending review in October would shape policies up to 2015, but union leaders warned of a "volatile cocktail" that could trigger unrest.
Chancellor George Osborne today told Brussels not to meddle with Britain's EU budget rebate secured by Margaret Thatcher in the Eighties.
