Brown: euro entry a long way off

Pro-euro campaigners were hit by a double blow today when Gordon Brown and the new president of Britain's biggest business organisation made it clear that moves to join the currency were still a long way away.

The Chancellor let it be known that he had not made any secret deals with Tony Blair to drop his long-held scepticism towards the euro.

He insisted that the five economic tests must be passed before any decision on a referendum could be taken - and that nothing must be done to jeopardise Britain's economic interests.

He also put paid to claims that he had "licensed" his supporters in the Government to make pro-euro comments, seen by many as a signal that he was preparing for a shift himself.

Last month Consumer Minister Nigel Griffiths, a close ally of the Chancellor, spoke out strongly in favour of the new currency without being rebuked by the Treasury in a move which greatly heartened proeuro campaigners.

They were also given grounds for optimism last week when Mr Blair's strong signal that he was ready to lead a campaign for a "Yes" vote in a referendum campaign was followed swiftly by Stephen Byers blurting out proposals for a Bill paving the way for a vote.

However, Mr Brown's move at the weekend brought them swiftly down to earth. Also crucial was the emergence of Sir John Egan, new president of the CBI, as a sceptic. He said: "The business community has swung from being broadly pro to being broadly neutral. Strong arguments in favour of joining have yet to be made and my suspicion is there aren't any."

Meanwhile, the referendum on whether to ditch the pound could be conducted entirely by post, the Evening Standard has learned. Tony Blair's most senior aides are studying plans to stage what would be Britain's first all-postal ballot in a drive to boost turnout in a vote which could take place as early as next spring. Ministers and Downing Street advisers were impressed by the success of a number of all-postal ballots which were tested in a number of areas in this month's local elections.

Voting exclusively by mail was tested by 13 councils, boosting turnout by an average of 26 per cent, with some areas seeing the number of voters double compared with two years ago.

Mr Byers has already publicly declared that ministers were looking "very carefully" at a plan to make next year's elections to the European parliament all-postal.

A well-placed source said: "This is very seriously on the agenda at No 10."

Analysis: The two referendum plans in play