Trade Secretary Peter Mandelson told the CBI that the UK will join the euro "when" it is in Britain's economic interests - a marked change from the previous "if" phraseology.

But his Tory shadow, John Redwood, insisted: "The government has no intention of taking us into the euro in this parliament."

Talking on BBC Radio 4's the World at One programme Mr Redwood explained his belief that the government has too many other things to worry about.

"They've got to win an election and all sorts of parliamentary battles and votes they've got to win a referendum and they've got to satisfy all their economic tests, most of which they couldn't satisfy at the moment, so I just don't believe it."

He added that, in his opinion, Mr Mandelson's statement changed little as Labour "have always wanted to take us into the single currency by stealth".

Cross-party committee

Chancellor Gordon Brown has announced a new cross-party committee of MPs to oversee the preparations for the single currency.

Gordon Brown: Preparing for the euro

The moves comes as the newly elected German Chancellor Gerhard Schröder is urging Britain to play a fuller role in Europe.

Mr Schröder is currently holding talks on the European economy with UK Prime Minister Tony Blair in London.

Mr Redwood said the Conservatives had yet to decide whether to join the new committee, but the chair, Labour MP Michael Wills, said MPs from all parties should take part.

He said as far as the Tories were concerned: "Whatever their policy, the euro is going to happen."

Gerhard Schröder is in the UK for talks

The former Conservative deputy prime minister Michael Heseltine has so far ruled out joining the committee until he knows where the prime minister stands on the euro.