UK's Third Party Now Leads in Polls

In one of the most stunning turnarounds in British election history, the UK's third party, the Liberal Democrats, now lead opinion polls just two and a half weeks before we go to the vote.

Sharon Lorimer

A YouGov poll for The Sun released Monday shows Nick Clegg and his party would win 33 percent of the vote, with David Cameron's opposition Conservatives on 32 percent and Gordon Brown's ruling Labour Party trailing in third place with just 26 percent.

If the poll were to be mirrored at the ballot box on May the 6th, Britain would be facing the prospect of its first coalition government since the Second World War.

Given the intricacies of the UK electoral system, if voters were to mirror the YouGov poll, Labour would have the most seats in the next Parliament but would need the support of the Liberal democrats to form the next government.

As a result, over the weekend Gordon Brown's Labour Party appeared to reach out to the Liberal Party on issues such an electoral reform, while the opposition Conservatives found themselves in the uncomfortable position of having to attack both parties, claiming a vote for Clegg would simply result in four more years of Brown.

On Monday, the Financial Times has released a survey of leading fund managers that shows they believe only an outright victory for either Brown or Cameron would sustain market demand for gilts.

The fund managers believe a hung parliament would delay action to tackle the UK's ballooning budget deficit.

Nine out of the 10 managers surveyed said they where indifferent to whether the next government was formed by either Gordon Brown or David Cameron.