FEARS that the cost of living in Waverley could rocket and control over local issues be lost to MEPS have been raised by the Conservatives.

Prospective Tory parliamentary candidate for SW Surrey, Jeremy Hunt, spoke out last week of his concerns about a "secret" directive issued by the Office of the Deputy Prime Minister.

All local authorities recently received the 43-page directive , Euro Guidance, which contains suggestions and advice about how to prepare for a possible currency changeover.

Mr Hunt claims there has been no publicity about the directive issued by the government.

The guidance includes suggestions on how councils could "round up" prices after conversion from sterling to the euro.

Mr Hunt warned that, if implemented, the guidance could have massive implications on Waverley's budget, leading to price hikes for services such as car parking, council house rents , and other council-run services.

The guidance, however, states that the Department of Work and Pensions is not expected to round up benefits, including housing benefit.

Mr Hunt said he was "very concerned" about the amount of time and resources that could be put into planning for a change of currency.

"Time and resources better spent on improving local public services will be wasted on planning for something that the majority of the British public opposes," Mr Hunt blasted.

Meanwhile, the leader and deputy leader of Waverley's Conservative opposition, David Harmer and Pat Frost, respectively, have called for the borough council to write to the Prime Minister demanding a national referendum on the proposed European constitution.

At a meeting of the full council last month, Mr Harmer said: "In proposing this motion I am not in any way commenting on the desirability or otherwise of the proposed European constitution."

"What I am saying is that, as a matter of principle, the imposition of such a fundamental change ought to proceed only with the specific consent of the people through a single-issue referendum," Mr Harmer added.

Speaking on the government's proposals for the EU constitution, Mrs Frost said: "Laws and regulations ranging from transport to social policy, from the environment to law and order, would be decided by pen-pushers in a foreign country, rather than by elected representatives.

"Local councils like Waverley would be jumping to the demand of European diktats."

The Lib Dem leader of Waverley Borough Council Chris Slyfield was reluctant to discuss his party's views on Europe.

Mr Slyfield said he was unable to comment on either the directive or the calls for a referendum until his party had discussed the matter thoroughly among themselves and been briefed by Waverley's officers.

"We will be discussing the matter in depth at our next meeting of the executive.

"It is important that we make the right decisions for the people of Waverley.

"We are taking these matters very seriously," Mr Slyfield said.