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Who gets credit for UK prosperity?

Crowds
With the economy in good shape, issues like health and education may prove decisive among UK voters  


By CNN's Tom Bogdanowicz

NEWBURY, England (CNN) -- Voters in the flourishing town of Newbury in Britain's high-tech corridor may find it difficult to decide which party to credit for their prosperity.

Is it four years of Labour's financial management? Or the previous 17 years of Conservative rule? Or is it the professed honesty of their local Liberal Democrat member of Parliament?

"People think politicians are in general dishonest and don't tell them the truth, which is one of the reasons why we have been determined to tell the truth, even when it hurts, even when it's a hard truth and we have to talk about the possibility of raising taxation," says Liberal Democrat MP David Rendel.

There have been no such suggestions from the Tories or Labour. They're busy competing for the favours of the business community.

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In fact, in this election Labour is characterised as being more conservative than the Conservatives on economic policy.

"If someone had said in 1997 that Labour was to going to come into government and cut corporation tax from 33 pence to 30 pence, cut capital gains tax for long-term investments from 40 pence to 10 pence, introduce a share options scheme under management incentives, as we have done, then they would have said that was unlikely. But that is exactly what we have done," says Gordon Brown, British Chancellor of the Exchequer.

The strategy is clearly having an effect -- 58 corporate executives recently endorsed Labour. Even the boss of mobile phone giant Vodafone, a former young Conservative, rejects the Tories' negative stand on adopting the euro currency.

"There are a number of people who are Conservative sympathisers who find themselves out of sympathy with the position taken with respect to the euro and Europe in general," says Vodafone CEO Chris Gent.

It's a well-worn view that people think of their personal incomes when they vote. But this time around, Britain's economy is on track. Four years into a Labour government, inflation is low, economic growth is above 2 percent a year and wages are rising.

And aside from whether Britain should join the euro, the major parties are not leagues apart on economic policy.

Polls show the deciding issues for voters this week may be health and education, not the thickness of their wallets.







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May 8, 2001

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