Hain admits: We have a trust problem

Peter Hain, the Europe minister, has admitted the Government has a trust problem that might make a "yes" vote in a euro referendum more difficult to achieve.

Amid increasing speculation that Gordon Brown, the Chancellor, will announce next month that the Treasury is ready to begin its assessment of the five economic tests, Mr Hain suggested yesterday that rows over spin could affect any poll.

His remarks followed a new opinion poll giving Labour a lead over the Tories of just three percentage points, its lowest rating since the fuel crisis of 2000.

Tony Blair repeatedly ducked questions about trust or spin during his Downing Street press conference last week, despite a poll showing that a majority of voters felt Labour was "dishonest".

But Mr Hain told BBC1's Breakfast with Frost: "We have undoubtedly suffered from a lack of trust from the average voter and all the kind of spin and stuff that has been going on, as has been acknowledged from the top of the Government." The minister added: "But yes we do have a trust problem and if we called a referendum, clearly we would have to deal with that."

The Sunday Times/YouGov poll put Labour on 38 per cent to the Tories' 35 per cent, slashing Labour's lead from eight points in the equivalent poll last month.