27 October 1997

In the House of Commons the Chancellor states the Government's position regarding UK membership of EMU. He advises that the Government agrees with the single currency in principle, but that it would not be realistic for the UK to join in the first wave of participants on 1 January 1999 because the UK economic cycle was out of line with that in other EU countries. He argues that membership is unlikely to take place within the current Parliament, detailing five economic tests to be passed. He announces Government support for business preparations for UK entry early in the next Parliament.