Staying out of the euro has damaged inward investment into the UK, the trade and industry secretary admitted yesterday.

Patricia Hewiit told the Commons trade and industry select committee that the UK's continuing presence outside the eurozone was a factor in an investment slump.

Her words will fuel speculation that the government has still not ruled out a euro-vote in this parliament.

"The problem of the exchange rate and the whole issue of the single currency is undoubtedly a factor - not the only factor but it is a factor in the investment decisions that are being made now," she said.