The British Business Secretary has said the debate on Britain's relationship with the EU has created unnecessary uncertainty among business groups.

Speaking on Morning Ireland, Vince Cable said he had come to Ireland in an effort to calm down that uncertainty.

He said Ireland and Britain were very closely connected and he said both countries were members of the EU and want to see it reformed.

Mr Cable said he is confident that Britain would stay in the European Union, adding that "common sense would prevail."

The British Business Secretary said the crisis in the euro zone - which Britain is not a member of - had brought the bloc closer together and it could progress past monetary policy to closer harmonisation of tax and banking policy.

He said if the euro zone started making decisions about the single market, questions could arise about what Britain's role is. There was an element of uncertainty that is inherent in the fact that there is an inner core of the euro zone of which Ireland is a member and Britain is not.

Mr Cable also said the risks for investors thinking of locating in Britain are small. ''The leaders of all three parties including Mr Cameron want Britain to stay inside the European Union,'' he stated.

''We all agree that things have to change, the European Union in its present form isn't working brilliantly. I think we can get together and sort this problem out and calm down some of the uncertainty that has arisen in the wake of this heated political debate,'' he added.

Mr Cable addressed a conference organised by the British Irish Chamber of Commerce in Dublin's Aviva stadium yesterday where he described the prospect of Britain leaving the EU as a ''nightmare scenario'' that would throw up a ''green wall'' across the island of Ireland.