Retailers accuse UK government of Euro slackness

The UK government has been slammed for not providing enough information on the euro, in a report released on Friday by the British Retail Consortium (BRC).

The survey says uncertainty over whether the UK will join EMU is preventing small and medium-sized retailers from getting their IT systems ready.

According to the report 64 per cent of large retailers have started planning for the UK's possible entry into EMU, but only 26 per cent of smaller firms are geared up. Most of the remainder were not even aware that euro notes and coins will be introduced in participating countries on 1 January 2002.

The timing of entry into EMU is of particular importance for the retail industry, as most of their efforts will be focussed on IT systems, particularly cash registers and financial software. They also need to train staff and educate consumers to use the new currency.

The survey found that 75 per cent of retailers thought it would take them at least three years to prepare for the euro. A BRC spokesman said that without a deadline for entry, many small firms were unwilling to start conversion, as their investment might prove to be money wasted.

The BRC is calling for government to clear up the uncertainly and to provide companies with more guidance on conversion.

The Treasury is expected to respond later today.