AN MP who has been appointed as Labour's shadow minister for Europe has warned that a referendum on Britain’s membership with the EU could destabilise the economy.

Gareth Thomas, Labour MP for Harrow West, left his role as shadow charities minister for the new appointment as part of opposition leader Ed Miliband's shadow cabinet reshuffle on October 7.

Mr Thomas, a former minister for international development under Prime Minister Gordon Brown, will now be responsible for Labour's relationship with Europe, speaking for his party on debates regarding the continent and helping Labour devise policy at a time when Britain's relationship with the European Union is a subject of national debate.

The 39-year-old said: “I do not think committing now to a referendum in 2017 is in the national interest.

“The priority should be economic stability, job creation and economic growth.

“A 2017 date has more to do with the Conservative Party's lack of trust in David Cameron.

“I believe Britain's national interest lies in Britain being at the heart of a reformed European Union and I plan to make both the case for Britain in Europe, and for change in Europe.”

With the rise in prominence in the polls and the profile of the UK Independence Party (UKIP), David Cameron has had Eurosceptic backbenchers to contend with but Mr Thomas said Nigel Farage's UKIP will not have any impact on his policy.

He said: “My priority is Labour's policy. I am not thinking about what positions other parties are holding.

“I am concentrating on what Labour's policies should be and if the Conservative's are struggling internally on what to do on the matter of Europe then I will just leave them to it.”

Getting Labour to commit to passing the Community Reinvestment Act, which would require banks to publish details of their lending and to spread money to the communities where funding is most required, is a central part of Mr Thomas' accomplishments as charities shadow minister of which he was most proud, but it was a role that came with many challenges.

He said: “The biggest challenge was assessing and championing charities at a time when we are facing huge cuts in funding from central government, and at a time when the demand for their services was rising very fast.”

Mr Thomas takes over the shadow Europe minister post from Emma Reynolds, MP for Wolverhampton North East, while his old job has been given to Lisa Nandy, MP for Wigan.