Former deputy prime minister Lord Heseltine has urged Tony Blair to seize the initiative on the euro by leading a campaign pushing for British entry.

In a keynote speech to the European Movement annual conference in Birmingham on Saturday the Tory peer said the pro-single currency lobby was waiting for strong political leadership.

A leading pro-European in the Tory party, he said opposition to the euro was "softening".

He welcomed the prime minister's recent positive comments on the subject and declared he could stake a place in history if he led Britain into joining.

Lord Heseltine's comments came as a new poll suggested more people trust Chancellor Gordon Brown's judgement on Europe than Mr Blair.

The best evidence for the success of the euro will be the experience of the 25 million Brits who will travel to the continent this year

Lord Heseltine

The speech by the former minister will be interpreted as further evidence of pro-euro momentum suggesting a referendum early next year.

He said: "It seems to me that the only ingredient missing in the recipe for British membership of the euro is political leadership - and has been for some time.

"But while warm words are obviously not enough, it would be churlish not to respond positively to the signs that the Prime Minister is willing to lead Britain into the euro.

"The coming months will tell whether he is willing to deliver on this promise, but the prize of his doing so is enormous in terms both of Britain's national interest and the prime minister's reputation in the history books."

'Political isolation'

Lord Heseltine said a successful referendum depended on the prime minister's leadership and without it "the pro-European supporters will remain reluctant and hesitant."

He said: "The best evidence for the success of the euro will be the experience of the 25 million Brits who will travel to the continent this year.

"What they will see and hear in the real world of the euro-zone will be far more eloquent than the strident over-exaggerated language of the euro-sceptic pressure groups."

Will British holidaymakers support the new currency?

A Sunday Times survey suggests 36% of people trust Mr Brown to make the right decision over euro entry compared to 13% who trust Mr Blair.

But researchers said 45% of the 2,001 people surveyed trusted neither of them.

The online survey by YouGov conducted on Thursday and Friday suggested 51% of people expected a referendum in the next 12 months, while 31% did not.

The percentage who said they would support entry now appeared to fall to 16, from 18 at the start of the year.

On Friday European Commission President Romano Prodi warned the UK it risked political isolation if it turned its back on the euro.