Chancellor shrugs off pressure for a change of policy over single currency

The Chancellor, Mr Gordon Brown, yesterday shrugged off pressure for a change in policy as cabinet divisions over the tactics…

The Chancellor, Mr Gordon Brown, yesterday shrugged off pressure for a change in policy as cabinet divisions over the tactics of British membership of the European single currency resurfaced.

The Prime Minister, Mr Blair, the Chancellor and the Foreign Secretary, Mr Robin Cook, put on a show of unity earlier this week when they travelled together to the EU summit in Portugal.

But several newspapers yesterday carried clearly well-sourced reports that Mr Cook, Mr Peter Mandelson, the Northern Ireland Secretary, and Mr Stephen Byers, the Trade and Industry Secretary, have joined forces to press for a fundamental change in the government's tactical position on the euro ahead of the general election. Speaking to reporters in Birmingham, Mr Brown insisted that an assessment of the euro in relation to his famous five economic "tests" would not take place until "early in the next parliament".

But Mr Cook, Mr Mandelson and Mr Byers are pressing Mr Blair to give an assessment of Britain's readiness to join the euro before the election, the pro-euro enthusiasts apparently fearing ministers will look "shifty and dishonest" if they have to "stonewall" on the issue during the campaign.

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Mr Brown insisted his was the policy "set down by the government" as a whole, vowing: "We will continue to pursue it with the same consistency that we have done over the last three years".

The Chancellor again sidestepped a direct question as to what discussions he had had, if any, on the issue with Mr Mandelson and the Europe minister, Mr Keith Vaz.

Tory MPs had cried "Frit, frit" ("Coward!") in the Commons on Thursday when Mr Brown left it to the No 5 on his treasury team, Ms Melanie Johnson, to answer the same question from Tory MP Mr Julian Lewis.

And yesterday Mr Michael Portillo, the Shadow Chancellor, accused the government of trying to "duck the debate" on euro membership.

Addressing the Scottish Tory conference in Dundee, Mr Portillo said Mr Brown was "attempting the impossible" in trying to suppress the debate.

"The genie is out of the bottle and people are hungry for facts. We will meet that need and will carry our case to the country," Mr Portillo said.