Black Rod row may force Blair to delay euro referendum

Supporters of Britain joining the single currency fear Tony Blair may be forced to delay a referendum after being blown off course by the damaging rows over "spin" and his role at the Queen Mother's funeral.

Although Blair aides hope the recent controversies will be long forgotten by the time the Prime Minister decides to risk a referendum, there is growing speculation that he will back away from one unless he can halt the tide of bad publicity.

Some pro-euro figures fear the recent rows have eroded people's trust in Mr Blair, a vital commodity for his battle to persuade them to join the single currency. Ken Jackson, leader of the Amicus trade union, said: "Obviously what is going on at present is damaging. Anything that damages a Prime Minister we could do without. The public wants us to get on with the job ... to see delivery on public services and see the Prime Minister lead us in Europe."

Opponents of the euro believe the prospects of a referendum have receded. Ian Davidson, chairman of Labour Against The Euro and MP for Glasgow Pollok, said: "When there is hostility and cynicism, people could use a referendum just to take a kick at the Government. The recent unhelpful publicity can only increase the possibility of large numbers of people coming out to vote against."

The Tory leadership is convinced Mr Blair will be forced to drop plans for a referendum next year. One senior Tory said: "Trust is an absolutely crucial issue for him. It has been a significant asset but the funeral and questionable actions damaged his trustworthiness."

The Tories believe they will benefit whether or not Mr Blair calls a referendum. "If he goes ahead, we will beat him. If he backs down, that is a defeat because everyone knows that he wants to get into the euro to secure his place in history," the Tory source said.

But Blair aides said a referendum would "blow away" the media-driven stories about spin and the funeral. One ally said: "No one will be talking about the funeral when the decision is made, which might not be until early next year. It will be long forgotten."

In another sign that Mr Blair may grasp the euro nettle, one of his closest ministerial allies is to reignite the debate inside the Government over the single currency by backing early British membership.

David Miliband, the former Downing Street adviser promoted to Schools minister last month after just a year as an MP, will speak at the launch by Britain In Europe of its Tyneside branch on 4 July. He has joined a panel of Labour MPs who will put forward the pro-euro case at party events throughout Britain.

Simon Buckby, the director of Britain In Europe, said: "We have a historic coalition behind our campaign, including politicians of all parties, businesses and trade unionists. Now our objective is to build a coalition in all communities."

* Sir Bryan Cartledge, a former Downing Street private secretary, defends Number 10's actions over the funeral in a letter to The Independent today. He says officials had a duty to uphold the dignity of the Prime Minister's office on state occasions and to attempt to win a revision if the ground rules were changed.