Hague: Britons back pound

Passers-by were urged to commit to keeping sterling

William Hague has said his position on the euro is supported by most of Britain during a day of party action for the pound.

He claimed the "vast majority" of Britons wanted to keep sterling, which would make the question of the single currency one of the defining issues of the next election.

Speaking during his one-day Keep the Pound campaign, Mr Hague accused Tony Blair of "running scared" by refusing to hold a referendum over the euro.

"The Labour Party wants to get rid of the pound if they win the next election. We want to keep it," he said at a rally in Birmingham.

"I say come on Tony, if you want to scrap the pound, come and put the argument."

Political opinions differ on the euro's merits

Conservative party activists have set up stalls in 330 constituencies across the country for Keep the Pound, with Mr Hague helping to hand out leaflets in Birmingham and Bury, Greater Manchester.

Earlier, the Tory leader told BBC Radio 4's Today programme there were signs the public was rallying to his policy in the run-up to the general election.

"People are going to be faced by a Labour government that wants to get rid of the pound, or a Conservative government that is guaranteed to keep it," he said.

"Every other party would want to do away with the pound and so it is a straightforward choice, a fundamental choice, and I think people will be on our side."

'Vindicated'

Mr Hague said he had been criticised for adopting the policy at first.

"A lot of people told me it would have gone out of fashion by now and that everybody would want to join the euro and that I was making a great mistake," he said.

"Well actually I have been vindicated by events. The vast majority of the Conservative Party have rallied behind that policy and the vast majority of the country are now rallying behind it."

Leaflets handed out to the public on Saturday included a commitment card for passers-by to sign, pledging not to replace sterling with the euro.

The Labour Party has dismissed the action as a publicity stunt.

The Conservatives' action is timed to mark the first anniversary of the European elections, in which the party did well.

Party chiefs said that victory was a public endorsement of its policy of ruling out euro membership for this and the next parliament.

'Business advantages'

But Trade and Industry Secretary, Stephen Byers defended the prospect of joining the single currency, saying it would help British companies in a global marketplace.

Mr Byers told the Yorkshire International Business Convention: "Membership of a successful single currency would give European businesses the same advantages already enjoyed by their competitors in the United States.

"By opening up a larger market and reducing exchange risks and costs, businesses should be able to take greater risks in developing new products and services."

His speech, significantly, was approved by Mr Blair and one of the Cabinet's more eurosceptic members, Gordon Brown.