UK is undecided on benefits of the euro

HOSPITALITY firms are divided over whether the UK should join the single European currency, but a small majority believe we should wait to see how the euro performs before deciding to commit, claims a recent poll.

Although the survey of more than 450 members of the British Hospitality Association revealed a broad split in opinions, it found small firms (up to 50 employees) more in favour of staying out than their larger counterparts.

The "wait and see" option was the choice of 36% of respondents, while another 15% thought the Government should commit "in principle" to joining without deciding a date.

However, 22% wanted the UK to join the European Monetary Union (EMU) as soon as possible, and 10% within the next five years. Five percent believed the UK should delay any decision until after 2007, while 9% favoured staying out altogether.

Views were similarly mixed on the impact of delaying entry (see table). A majority thought it would adversely affect the UK economy, but not their own businesses. Joining would bring lower interest rates but higher corporate taxation, according to 60% and 44% respectively. But while 37% thought economic stability would improve, 31% believed it would decline.

by Angela Frewin