Blair accused of using British business to test euro waters

In an open letter to the UK Prime Minister Tony Blair, three anti-euro trade associations have accused the government of forcing business to spend millions on euro-preparations despite the fact Britain may not enter the single currency.

The charges - made by the Federation of Small Businesses (FSB), Institute of Directors and Business for Sterling - are that the government has been using businesses as part of a political strategy while it waits to make up its minds.

A spokesman for the FSB said: "Why should businesses spend so much money preparing for the euro when it's not even certain that Britain will enter into the single currency".

He said the FSB's advice to companies is to look into the implications of the single currency but not to "spend thousands or millions on a euro-compliant IT system".

The spokesman concluded: "Businesses need finality and certainty so let's have a decision. Even if we do enter the single currency it won't be for six more years, so there's no need to pressurise companies into spending and preparing now."

A spokeswoman for the Business and Accounting Software Developers Association (BASDA) - a leading authority on business conversion to the euro - echoed the plea. "We would say that the government has got to make a commitment one way or the other. It's a big leap of faith for many of the smaller companies who may have to spend money on compliancy before the decision is made," she said.