And they're off! Queen fires the gun on UK election

The Queen of England kicked off a month of campaigning for the U.K.'s general election Monday, when U.K. Prime Minister David Cameron visited her at Buckingham Palace to ask her to dissolve parliament ahead of the election on May 7.

Speaking outside his residence, Number 10 Downing Street, following the visit , the prime minister told voters that they face a "stark" choice in 38 days when the polls open between his Conservative party or Labour, the center-left opposition party under by Ed Miliband.

"You can choose an economy that grows, that creates jobs, that generates the money to ensure a properly funded and improving (state health service) NHS ...and a Government that will cut taxes for 30 million hardworking people. Or you can choose the economic chaos of Ed Miliband's Britain."

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He also stressed his party has presided over a period of economic prosperity in the U.K., although critics have made much of the fact that the drop in oil price has been a boon to the economy.

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In 2014, for instance, the economy grew 2.6 percent from the previous year, according to the Office for National Statistics (ONS), the fastest pace since 2007 and making it one of the best performing among major economies. Unemployment too is at its lowest rate since 2008, according to the latest figures from the ONS, at 5.7 percent.

'Effort and Sacrifice'

Cameron also added that after "five years of effort and sacrifice, Britain is on the right track."

"This election is about moving forward - and as Prime Minister here at Number 10 that's what I will deliver."

For all the prime minister's confidence, polls show that the election race is too close to call.

Following television debates with Cameron and Miliband last week, Labour have moved to a four-point lead, however, with viewers now saying Miliband won the contest, according to a poll by YouGov for The Sunday Times newspaper.

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Despite the latest voter survey, there is still a distinct possibility of another coalition government, however, which some believe would not be good for the economy.

"It would be good if you did have a government with a clear mandate that could implement reforms and pro-growth policies," managing Director at Plurimi Investment Managers, Patrick Armstrong, told CNBC Europe's "Squawk Box" Monday.

UK elections: Time to get personal

Economists at Oxford Economics have gone one stage further, having analysed the three main parties' economic and fiscal plans and what impact these would have on the U.K.'s economic and fiscal outlook.

According to senior U.K. economist at Oxford Economics, Andrew Goodwin, who published the results of the consultancy's study, stronger economic growth would not, in fact, result from the incumbent Conservative party wining another term.

"The Liberal Democrat plans would deliver the strongest GDP growth, followed by Labour, but both would also involve higher debt servicing costs and a higher level of government debt than the Conservatives," Goodwin said in a note Monday.

"But in our view, these premiums on debt and borrowing costs are so small that it is very difficult to argue that the U.K. should pursue a more austere fiscal policy and reject the opportunity of stronger growth."

- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld