'Not No, but not now' is business view on euro, says BCC

Two-thirds of British businesses would not back membership of the euro even if the Government said the UK had passed its economic tests, according to a poll published yesterday.

Half said they wanted to see whether the euro was a success before deciding, while one in eight ruled out membership on principle.

The British Chambers of Commerce, which surveyed 1,000 members, said the message was "not No, but not now".

However, the survey by the pollsters Mori appeared to show business was warming to the euro, with ardent supporters outnumbering fanatical opponents by a margin of three to one. Isabella Moore, president of the BCC, said businesses needed the Government to provide more information about the pros and cons of membership.

"Almost half of business wants to wait to see before taking a decision," she said. "It is not a definite no but it is most certainly a definite 'not now'."

The Government must decide by June whether its five economic tests have been met. Mori asked firms what view they would take if the Government decided to hold a referendum. While 13 per cent said the UK should never join, 35 per cent said it should adopt the euro within two years of a referendum vote and 49 per cent said they wanted to wait and see before making a decision. Support for immediate entry was higher from large than small companies. On the issue of the exchange rate, most businesses thought 67p to the euro, or DM2.92 to the old German mark, would be sustainable.

The BCC said its survey revealed low levels of understanding among businesses of the likely impact of euro entry, which it said was a "cause for concern". While two-thirds believed regulation would increase within the euro, half thought the UK would be more competitive. A third of members believed interest rates would rise even though UK rates would have to fall substantially to be in line with the rest of Europe.

"The quality of information from the Government to date has been very poor," Ms Moore said. "It has a lot of work to do."

Opponents of the euro said the poll supported other surveys showing opposition to membership. "This is a blow to the pro-euro campaign," George Eustice, the campaign director of the "no" campaign, said.

"The Government desperately needs the support of British business in order to make the case for the euro but this poll shows that businesses are becoming increasingly sceptical about the its five-tests policy."

Britain in Europe, the leading pro-euro lobby, said support for immediate membership had risen from 22 to 35 per cent over the three years since the last poll while outright opposition had fallen to 13 from 17 per cent.