MULTI-millionaire Paul Sykes was the star of the UK Independence Party (UKIP) election rally.

The Harrogate businessman, who is giving UKIP financial support, was welcomed into the party fold by a packed hall of activists in Westminster.

However rumours of a high-profile defection to UKIP by retiring Tory MP Theresa

Gorman proved false. She issued a statement which said: "Mrs Gorman has retired from politics."

Mr Sykes called for a referendum on withdrawal from the European Union, stating: "Britain is no longer an independent nation. When we lose the currency it's bye-bye Britain." He acknowledged there was a threat of votes for UKIP, which is fielding 421 election candidates, costing the Tory party seats. But he said that if the Tories wanted to "neutralise" the threat posed to their candidates by UKIP contenders in the General Election, the party should back Baroness Thatcher's comments that they would never give up the pound and they should offer a referendum on continued membership of the European Union.

Updated: 11:58 Saturday, May 26, 2001