President Obama has announced that senior Republican and Democrat party members have agreed a proposal to limit US debt by $2.4bn in order to avoid deault or downgrading from the nation’s triple A rating.

Making the announcement on Sunday, Obama said the agreement will cut spending by about $1trn over the next decade.

Votes in both houses are expected shortly, as many believe the deal is still set to meet resistance from Republican Tea Party members and certain sections of the Democrat party.

The deal would also put in place a new Congressional committee dedicated to recommending a further deficit reduction proposal by November.