British business was bounced closer to the euro fold yesterday when the Toyota car manufacturer asked component suppliers in Britain to issue bills in euros.

The Japanese car giant no longer wants British suppliers to bill in sterling, which has shown itself to be somewhat volatile against the single currency.

The announcement raised fears from unions that British business would be forced to bear the brunt of working in a currency which is not used in Britain, thereby carrying currency risk and putting the beleaguered manufacturing sector at further disadvantage to European competitors.