The British Transport Secretary, Mr Stephen Byers, was at the centre of a dispute over the euro yesterday after he claimed a Bill would be introduced in the next session of Parliament to hold a referendum on entry into the euro.

Sensitive to criticism from eurosceptics that the government was attempting to conduct a pro-euro campaign by stealth, Downing Street immediately attempted to clarify the position, insisting it was "wrong" to suggest there were any plans for legislation "unless and until the five \ tests are met".

The speculation at Westminster last night was that the unscheduled comments by Mr Byers, already damaged by resignations within his department, had effectively secured his departure from the Cabinet in a summer reshuffle.

Mr Byers signalled that next June was the likely time for assessing whether Britian should join the euro.