Britain: British Chancellor Gordon Brown's economic record took centre-stage at a "political" meeting of the cabinet yesterday in what is thought to signal the countdown to Prime Minister Tony Blair's announcement of the general election date on Monday.
With Mr Blair expected to travel to Buckingham Palace to see Queen Elizabeth and formally request a dissolution of parliament for a May 5th poll, he and Mr Brown were stressing to colleagues that Labour's performance in delivering economic stability was key to winning a third term in office. However, even as the cabinet put the finishing touches to Labour's manifesto, Mr Brown and the Treasury were forced on to the defensive after new government figures suggested that average incomes fell last year for the first time in more than a decade as a result of the tax and national insurance rises imposed after the 2001 election.
Conservative leader Michael Howard appeared to relish the looming showdown over the government's economic record, insisting that a third-term Labour government would raise taxes.
Meanwhile, the Liberal Democrats were out campaigning in London constituencies warning of increased council taxes under Labour's local government funding plans. Mr Blair and Mr Brown are expected to stage a show of unity later today, amid a continued lack of clarity about Mr Brown's role in the forthcoming campaign.
They are expected to try to exploit Mr Howard's embarrassment about the proposed deselection of MP Howard Flight following his gaffe in suggesting that plans for £35 billion in spending cuts or savings were "just the start" for an incoming Conservative administration.
However, Labour suffered a second blow yesterday when the Daily Telegraph published an analysis by City actuaries suggesting that private-sector pension funds have lost nearly three-quarters of their value since the Chancellor raided pension-fund dividend income in 1997.
Labour's election co-ordinator Alan Milburn hit back when insisting ordinary workers' take-home pay had risen by 1.8 per cent, while average take-home income had risen "by 20 per cent in real terms" since Labour came to power in 1997.