THE planned referendum on Britain's EU membership has raised fears of currency volatility among most of Yorkshire's small and firms with international trade.

Research by currency experts World First shows that 81 per cent of regional SMEs are worried about the impact of potential currency volatility caused by the vote.

It shows that two-fifths of Yorkshire firms are underprepared by not paying much attention to currency markets and 38 per cent have been caught out by sudden rate movements in the last year.

Meanwhile, 62 Yorkshire business leaders have launched a regional branch of Business for Britain, which wants to leave the EU, saying membership makes it harder for them to create jobs and is holding back their businesses.

World First said its survey of 1,000 bosses of UK SMEs making cross-border payments showed that Yorkshire-based firms remain dangerously exposed to currency fluctuations .

Jonathan Quin, World First chief executive, said: “Given that SMEs are the engine-room of the UK economy and key to our international trade, more needs to be done to ensure they are adequately protected from currency swings caused by events such as the EU referendum.

Specifically, whilst there is a lack of clarity about the exact timings of the EU referendum, SMEs should take the initiative now to help mitigate against the risks of currency volatility that we’ll likely see in the run up to the eventual day votes are cast."

Two local business chiefs are among those signing up to the Business for Britain regional group.

Adam Hosker, chief executive of Bradford-based Bespoke Finance and Karen Weaving, co-owner of Skipton's Rendezvous hotel, are among those wanting to see fundamental change in the UK’s relationship with the EU, believing that too much control over Britain's economy has been given away.

The group said polling by YouGov found that 40 per cent of Yorkshire SMEs believe the EU is making it harder to employ people, compared with ten per cent that think it makes it easier.

It showed that 61 per cent of regional SMEs believe the UK can trade and cooperate with the EU without giving away permanent control over the economy, with 68 per cent wanting Britain to negotiate trade deals, rather than the EU.

Carl Chambers, Business for Britain, Yorkshire, chairman said:"More business leaders in Yorkshire feel that the EU is hindering rather than helping them. EU rules are making it more difficult for us to expand and take on new staff.

‘I believe that businesses in the region could thrive outside the European Union – that’s why I will be voting to leave.”