KNARESBOROUGH was today at the centre of the single currency storm as it voted to hold its own "referendum" on the issue.

More than 60 people turned out to a special town meeting last night.

They voted to stage a poll of the town's 12,000 residents on whether they thought local government should postpone the spending of any more time or money preparing for the Euro until after a national referendum.

It is believed the vote could be the first of its kind in the country if it goes ahead. The meeting was constantly interrupted by raised voices, and four people stormed out. A second motion for a vote simply on keeping the sterling was overturned by the mayor of Knaresborough, Coun Julie Watkins.

People at the public meeting were told the vote would have to be carried out within the next 25 days under the terms of the Local Government Act 1972. It would have to be organised by Harrogate Borough Council and paid for by Knaresborough Town Council at a cost of between £3,000 and £4,000.

Coun Watkins, chairing the meeting, expressed her disapproval of the cost, and said spending £4,000 on the poll would affect other causes in Knaresborough.

Coun Andy Wright said he feared the money would be taken out of the £20,000 set aside for the Christmas lights. He said: "We are actually spending money on the Euro by doing the poll - doesn't that defeat the whole point of the poll?"

The motion to hold the referendum was carried by 33 to 24.

Robert Goodwill, the MEP who represents Yorkshire and Humberside, said after the meeting: "I think this meeting has borne out the frustrations that people feel over the Euro."

Harrogate Borough Council officers sent a message to the meeting stating they felt the issue did not qualify as a "parish affair" under the Local Government Act 1972, and therefore a vote would not be valid.

Last night's meeting was called after six people had took action as part of a campaign by CARP, the Campaign Alliance for Referendums in Parishes, formed by frustrated Euro-sceptics.

After the meeting, Chris Royston, one of the six, said: "I'm pleased that Knaresborough is going to the poll, but disappointed with the conduct of the meeting."