The British Chancellor of the Exchequer, Mr Gordon Brown is on the verge of ruling out British membership of the European single currency before the next election, according to a newspaper report. As expected, Mr Brown will announce over the next few weeks that Britain will not join the first wave of monetary union on January 1st, 1999.

But he will also act to protect the economy from damaging speculation about the government's long-term intentions by making plain that Britain will not join in the present parliament, the London Times says today.

In an interview with the newspaper, the Chancellor gives the clearest signal so far of the government's intentions towards the euro. He says he will make his announcement to parliament before the end of the year, but emphasises that he will do so when he is ready and that he will not be rushed.

Recent speculation has suggested that Britain would enter the single currency at an early opportunity soon after the 1999 launch date, but it now appears that the Chancellor will rule out Britain's entry within the lifetime of the current parliament, which could last until 2002.