Suggestions for a new "Made in the EU" label are not a threat to UK business, Mike O'Brien has argued.

In a speech to the Confederation of British Industry, the Foreign Office and trade minister talked down an idea to change labels in products such as clothes.

He insisted that the suggestion forms part of a discussion document produced by European Commission, and is not even a proposal.

"The misunderstanding seems to have arisen that the idea of an additional label might somehow oblige British companies to get rid of their national label. This is not the case," he said ahead of his address.

"The Commission has produced a discussion document - not a proposal - inviting member states to express their views on whether there should be the creation of this additional marking scheme.

"As the paper is currently constructed, the label 'Made in Britain' is not at risk. Indeed British companies can continue to say 'Made in Stoke', 'Made in Scotland' or anything else which is truthful."

O'Brien's comments follow the publication of an advertisement taken out by a number of leading British companies, expressing concern at media reports about the suggested "Made in the EU" label.