BUSINESS leaders have warned that Lancashire firms would face major costs if Britain adopted the euro.

Don Greenhalgh, former chairman of Clitheroe-based Ultraframe, said the cost of staff training and changing cash machines would have an inevitable impact on firms and their customers.

"Leading retail organisations have estimated that joining the euro would cost businesses up to 2.5 per cent of their turnover and it is the smaller, local retailers would be hardest hit," said Mr Greenhalgh, who heads North West construction firm Allen.

"It is the customer who pays for all these extra costs. The euro is bad news for consumers."

Mr Greenhalgh, co-chairman of the Business for Sterling Group, said the estimated cost to North West firms and organisations of converting to the euro would be £3.9billion.

"Why should businesses be expected to waste money preparing for the euro when we have not even decided to join and when more than two thirds of the public are against it?"