Tony Blair has unexpectedly admitted that entry to the euro "doesn't look likely".

On the same day that Blair's election campaign was rattled by the disclosure by Channel 4 of Lord Goldsmith’s advice on the legality of the war in Iraq, the prime minister also moved towards ruling out British membership of the euro in the next parliament.

Previously the government had maintained that it favoured membership in principle and was keeping the option open.

Blair's remarks seem to pre-empt the decision for the next few years. "If the economics aren't right, if it won't help your country economically, you don't do it," he said.