Britain’s Labour government may have difficulty maintaining its own limits on spending as the party seeks to improve poll ratings after Prime Minister Gordon Brown abandoned plans for an election this year, economists said. “Calling off the election reinforces the idea that the government is very sensitive to polls,” said Michael Saunders, chief western European economist at Citigroup Inc. in London. “We are becoming more doubtful that the government will deliver the wider aim of establishing a politically sustainable route to fiscal virtue.” Full Story
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