UK shops and firms should accept euros, says minister

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'Britain is losing jobs by staying out of eurozone'

Peter Hain, the minister for Europe, has appealed to Britain's businesses and shops to accept the single currency notes and coins which are to be introduced in 12 European Union countries on 1 January.

His call will anger Euro-sceptics, who will accuse the Government of trying to take Britain into the new currency by stealth. They are worried that what they call "euro-creep" will persuade the public that British membership of the euro is inevitable before the arguments for and against joining the currency are put to voters in a referendum.

Several prominent British stores, including Marks & Spencer, Bhs and Debenhams, have already promised to accept euros. And, in an interview with The Independent, Mr Hain made the most positive comments so far by a government minister about next week's euro launch.

He said: "It is very striking that shops and retail outlets are rushing to use the euro. It is a process of Britain coming to terms with the fact that the euro is here to stay.

"Whether we are in or out of it, it affects us. I want our shops and retail outlets to gain from the euro – as they have clearly decided they want to in order to remain competitive – rather than to lose out."

Mr Hain said: "I want the 13 million continental Europeans who come to shop and visit each year to know they can just bring their money over with them because they will then spend more money here rather than give their 5 per cent [commission] to the money-changers. I would rather that money went into shops and businesses in Britain than to a bureau de change in Paris or Berlin."

However, a Conservative spokesman said last night: "The Government should have the courage to call a referendum and stop trying to dupe the British people into joining the euro. We are ready for a referendum at any time."

The Europe minister believes British consumers would benefit from "dual pricing" in pounds and euros – particularly for products such as cars – enabling them to shop around for the best price. "I think it will start to affect prices. If more and more businesses and retailers dual price – as I think increasingly they will to attract European custom – people will very easily be able to see the price of a Walkman at Dixons at Heathrow compared to Malaga airport." He said people should be "relaxed" about the use of the euro in Britain before people go to vote in a referendum. "This is private-sector driven. It is not the Government bringing the euro into Britain, but individuals making decisions for themselves." Mr Hain continued: "I want Britain's businesses to be competitive and I want Europeans to be spending more of their euros in Britain rather than in their own country or another country."

He added: "If it encourages a French family to come here and shop in a British town or city because they use the same money, I think we should be supporting that, regardless of whether we are in or out."

Mr Hain believes euros circulating in Britain would have "a profund impact in terms of familiarisation". He said: "Instead of the euro being a source of puzzlement, mystery and fear, it is going to be part of daily life for people who travel abroad and encounter it on their own high streets."

But he said this process alone would not ensure a "yes" vote in a referendum. "I think people should make up their minds on the euro on the practical benefits for them. There will be huge practical benefits."

He cited the case of Britons on the Continent who currently waste money at airports just to use up their notes and coins. They could now "bring it back, put it in the bottom drawer and take it back next time".

Charles Kennedy, leader of the Liberal Democrats, told the website ePolitix.com he would consider joining a cabinet committee of Labour ministers, pro-EU Tories, the CBI and TUC to promote the euro. He has left the joint cabinet committee with Labour on other constitutional issues.