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EU strategy: Nigel Farage attacks Heseltine stance

12 January 2013 Last updated at 16:36 GMT

UKIP leader Nigel Farage has criticised Lord Heseltine's position on the European Union after the Tory peer said that an "ill-advised" referendum would jeopardise the UK's business prospects.

Mr Farage said that the UK must make a "fundamental decision" on whether to be "in or out of Europe". Lord Heseltine has said that offering a referendum on EU membership would be a "punt".

David Cameron is expected to announce this month that the Tories will offer a referendum after the next election.