Over half of the country expects the UK to have joined the euro in five years time, new research has revealed.

With the cabinet set to decide by June this year whether to recommend a referendum on euro membership, a poll conducted by Girobank has shown wide regional variations in people's expectations about the currency's destiny.

Those living in the South East are most expectant of euro entry, with 61 per cent expecting the UK to join.

Scots are also confident of entry - with 60 per cent expecting to join - while those in the North West are not far behind on 57 per cent

At the other end of the scale only 44 per cent of people in the Midlands expect to be using euros in the future, while 48 and 49 per cent of those in the North East and Yorkshire respectively thinking the UK will join the single currency soon.

Labour pollsters will consider the "inevitability" factor when judging whether the country's generally anti-euro mood can be won around if the government risks recommending a referendum.

"Judging by our survey, popular thinking seems evenly divided on whether the euro will replace the pound," said Gareth Williams of Girobank.