British Chancellor Gordon Brown has told parliament that the Treasury will not look at the five economic tests for joining the euro this year.
But in his budget speech, he left open the option of a referendum before the next British general election, saying that the situation would be reviewed again in next year's Budget.
Mr Brown, in his budget speech, also said that the British economy would grow by 3-3.5% this year. He also forecast that inflation would be 1.75% this year and 2% next year.
He said the country was ready to capitalise on the global economic recovery by boosting investment in education, science and enterprise.
With tax revenues stagnant, Mr Brown halved the rate of public spending growth in the next few years from the near 5% annual surge of recent years.
He also said there would be a review of the tax treatment of betting exchanges and their clients. Most taxes were left unchanged, however.
Mr Brown said the British Government was able to afford all existing commitments, including those for ongoing involvement in Iraq, Afghanistan and the fight against terrorism amounting to £6 billion, and would set aside £1 billion next year as a reserve.
But he announced that more than 70,000 public sector jobs would be cut, including 40,000 as a result of the merger of the Inland Revenue and Customs and Excise.
The Chancellor also said around 20,000 public service jobs would be relocated out of Whitehall.
