YORK'S biggest private employer today defended its decision to give cash backing to a campaign to take Britain into the euro.

A spokesman for Nestl UK said it made a donation to the Britain in Europe fund because it believed manufacturers' interests would be best served by joining the new currency.

The revelation is bound to fuel the row which led The Sun newspaper to brand the company's chairman and chief executive Peter Blackburn "the most dangerous man in York" because of his fears that the strong pound is damaging British industry.

A company spokesman said: "On behalf of Nestl UK, chairman and chief executive officer Peter Blackburn has consistently expressed his concern in recent times about the effect on its UK exports of the strength of the pound, particularly against the euro.

"The company's view is that the interests of UK manufacturers and exporters like Nestl UK would be best protected if Britain were to join the euro, provided it is able to do so at an appropriate rate of exchange."

The spokesman would not reveal the size of the donation.

Mr Blackburn has told the Evening Press about his astonishment over The Sun attack, but pointed out Nestl UK had lost more than £100 million in exports in the last few years, largely due to the strength of the pound.

Other companies said to have given money to Britain in Europe include BAE Systems, Unilever, Philips, BAT, ICL, BP and KPMG. British Airways and British Midland are reported to have given benefits in kind.