LEADING businesses have warned the Government to stay out of the euro on the tenth anniversary of Britain's withdrawal from the ERM.

In marking Black Wednesday, John Wright, Federation of Small Businesses (FSB) North-East policy chairman, said: "We believe it is crucial to remind the present Government of the dire effects of the ERM in those days on the UK economy.

"In the euro, the straightjacket would be even worse, as Portugal and Ireland are now finding out to their cost."

He added: "The high level of interest rates required to sustain the pound at a preset level against the German mark, led to over 100,000 businesses going bust between 1990 and 1992.

"This led to not only a trail of debts but to the very livelihood of many self-employed people going from underneath them. Unemployment also shot up to three million by the time Britain left in September 1992."

An ICM poll published this week has revealed that only one in five business leaders want to join the euro in this parliament

John Elliott, North-East chairman of the No campaign, said: "This is a major blow to the Government which has been banking on business leading the call to join the euro.

"Clearly this is not going to happen. This poll shows that business is still split on the euro and that there is no overall advantage to business as a whole from joining the single currency."

He added: "The euro would be like the ERM all over again. It would threaten jobs, mortgages and living standards. We shouldn't go back. Please, not again."