A former Treasury minister has slammed UK preparations for the introduction of euro notes and coins in the new year as "paltry and shrouded in spin".

"The government's euro policy has been described as 'prepare and decide'. We know it has not decided - but what has it done to prepare?" asks David Simon, writing in Wednesday's FT.

Lord Simon, vice-chairman of Britain in Europe, former European trade minister and staunch ally of Tony Blair on the euro, warns that as Europe prepares for the "historic changeover" to the new currency, the government's policy "is regularly shrouded in spin".

"It is the spin that feeds the front page stories not the substance of the opportunities the euro opens up," he cautions. "While the spin-doctors squabble, the clock is ticking. The negligence on the practical question of preparation for the euro is a vulnerability in commercial terms."

With only 41 days to go before the European single currency's new notes and coins are introduced on the continent, Simon details the importance of euro-zone trade to business - estimated to be worth £4 billion in tourism alone - and slams the "paltry" Treasury sums allocated for preparation.

Two years ago, he writes, the UK spent £60 million warning of the costs of the millennium bug - a threat that never materialised - and lavished £380 million on upgrading government IT systems.

In contrast, Treasury expenditure on euro-preparation totals £9.9 million. "The paltry sums than have been spent and lack of profile given to the issue are storing up problems for the future," he predicts. However hard the anti-Europeans may try to keep Britain out of the euro they cannot keep the euro out of Britain - so we must be prepared."

The Number 10 spokesman distanced Tony Blair from the former minister's comments: "In terms of Lord Simon, we all know his position and his enthusiasm for that position. In terms of his specific criticism I think on this occasion we will disagree with him."

A Treasury spokesman told ePolitix that the government was "fully committed to preparing for the euro" and emphasised an ongoing information campaign targeted at small and medium sized businesses, including over 100 regional events to raise awareness this autumn.

The department's fifth report on euro preparations - published this month - gives details of a pack to be sent to 1.5 million UK companies including "a 'self-test thermometer' to help a firm assess the impact of the euro on its business".