Brown is in favour of joining euro, says Clarke

Supporters of British membership of the euro were encouraged yesterday by claims that the Chancellor, Gordon Brown, is preparing to back their campaign and wants a referendum next year.

The former Tory chancellor Kenneth Clarke said Mr Brown was in favour of entry to the single currency and of holding a poll next year. Mr Clarke's comments echoed other reports that the Chancellor had authorised his supporters to begin talking up the likelihood that Britain will join the euro before the next election.

"I think he's in favour of the single currency," Mr Clarke told BBC1's Breakfast with Frost programme. "I don't think his views are very different from mine and I don't disagree with him that the economic conditions have got to be right when you join and you've got to join on the right basis."

The former cabinet minister Peter Mandelson, a confidant of Tony Blair, added to speculation when he said Mr Blair and Mr Brown were closer on the issue than people thought.

Senior allies of Mr Brown insisted, however, that there was no deal between the Chancellor and the Prime Minister on a timetable for the euro.