Britain's manufacturers are warming to the euro, finds a new poll.

The number of bosses supporting UK entry into the single currency has risen to 30 per cent - up nine points in 18 months.

But the survey of engineering employers found that fears of high taxes and unemployment are still putting many off the euro.

New research showing higher labour costs around Europe are an additional worry to employers already concerned over the sterling-euro exchange rate, finds the Engineering Employers' Federation.