Labour backbenchers last night began to forecast a general election next summer after a day when the effects of the economic crisis slashed the Tory poll lead to three points and led David Cameron to abandon his commitment to match Labour spending plans if the Tories win power.Cameron's move liberates him to offer tax or spending cuts, but left him isolated in opposition to the government's plans to use short-term financial help to boost consumer spending and help the economy. The Tory leader claimed: "We cannot afford a massive tax giveaway." But his position was undermined as the Institute of Directors came out in favour of a £20bn stimulus, including a 3p cut in income tax, and the CBI also gave its support. The Mori survey yesterday showed Cameron's advantage had collapsed to three points, with the Tories on 40 points, down five, Labour on 37 points, up seven, and the Liberal Democrats on 12, down two. Mori said the lead represented only a four-seat Tory Commons majority. Labour is wary of fuelling speculation after the debacle of not calling an election last year, but said if polls went in the same direction over the winter, an election in June, the date of the European elections, becomes a serious option.
Labour backbenchers last night began to forecast a general election next summer after a day when the effects of the economic crisis slashed the Tory poll lead to three points and led David Cameron to abandon his commitment to match Labour spending plans if the Tories win power.
Cameron's move liberates him to offer tax or spending cuts, but left him isolated in opposition to the government's plans to use short-term financial help to boost consumer spending and help the economy.
The Tory leader claimed: "We cannot afford a massive tax giveaway." But his position was undermined as the Institute of Directors came out in favour of a £20bn stimulus, including a 3p cut in income tax, and the CBI also gave its support.
The Mori survey yesterday showed Cameron's advantage had collapsed to three points, with the Tories on 40 points, down five, Labour on 37 points, up seven, and the Liberal Democrats on 12, down two. Mori said the lead represented only a four-seat Tory Commons majority.
Labour is wary of fuelling speculation after the debacle of not calling an election last year, but said if polls went in the same direction over the winter, an election in June, the date of the European elections, becomes a serious option.
Especially if the tories really do intend a return to the policies of the 80s/90s, which are still not fondly remembered. keep to the Fen Causeway
I just hope some politicians start having the moral courage to talk about Britain joining the euro. However, I suspect by the time that is the case it will be too late for Blighty. Money is a sign of Poverty - Culture Saying
BBC NEWS | Business | Bank hints at further rate cuts
There could be more cuts in UK interest rates, according to the minutes from the Bank of England meeting at which rates were lowered from 4.5% to 3%. The Bank's nine-member committee voted unanimously for the cut on 6 November, but considered a bigger one. The Bank's own calculations showed that a cut to 2.5%, or even lower, would be needed to stop inflation falling too far below its target next year.
There could be more cuts in UK interest rates, according to the minutes from the Bank of England meeting at which rates were lowered from 4.5% to 3%.
The Bank's nine-member committee voted unanimously for the cut on 6 November, but considered a bigger one.
The Bank's own calculations showed that a cut to 2.5%, or even lower, would be needed to stop inflation falling too far below its target next year.
Rates are expected to be down to 1% by the end of next year. Unless there's parity with ECB rate cuts, that's likely to put the Pound near or below the Euro.
Gordo is probably considering EMU entry, but he'd need a snap election win first.
Plus, I think that the ECB would put such a price on joining in terms of the City's relationship with tax havens that the City itself would revolt.
Can't be done, whatever the advantages. keep to the Fen Causeway
