THE Chancellor of the Exchequer Mr Kenneth Clarke, has dismissed a warning by the head of Unilever that it would reconsider its future investments in the UK if Britain failed to join a European single currency.

Mr Clarke, who repeated the British government's official line that it was keeping its options open on monetary union, was referring to comments of the chairman of Unilever, Mr Niall FitzGerald. Mr FitzGerald echoed the recent warning by the chairman of car maker Toyota that the company might think twice about investing in Britain if it were to stay out of the single currency.

Unilever has about 21,000 employees in Britain, many of them in towns such as Port Sunlight on Merseyside, where Mr Clarke was yesterday campaigning on behalf of the Conservatives in the Wirral South by election. Mr Clarke said that although he was "sympathetic" to the single currency, it was right to keep Britain's options open and that it should not join unless the conditions were right.

The Chancellor, referring to Mr FitzGerald's comments, said "He is interested in a single currency and it's one of the things I think many businessmen here and abroad take into account when considering their investment and other decisions.

"But I think Niall FitzGerald also supports our position - keeping our options open, keeping involved in the debate and making a decision in due course in British interests. My guess is that Mr FitzGerald would be as critical as me at any attempt to rush on to a single currency with non convergent economies."