Did the budget deficit scupper any chance of a Labour government?
As rumours continue to grow that the Conservative party is on the verge of gaining power in the UK, with a Liberal Democrat alliance, there is speculation that the budget deficit and proposed public sector investment cuts may have scuppered Gordon Brown's chance of retaining the keys to number 10 Downing St.
As we covered in one of our earlier articles, it seems as though Gordon Brown and the Labour Party were willing to do deals with the Scottish, Irish and Welsh nationalists in order to secure a rainbow coalition which would have brought the Liberal Democrats into play. However, it is believed this would have been detrimental to England which would have been forced to take on the lion's share of public sector investment cuts, this being the price for support from the nationalist groups.
It is becoming apparent that many high-ranking Labour MPs were growing more and more concerned about the medium-term outlook for the party if national interests with thrown aside in favour of party self-interest. While Lord Mandelson and Alastair Campbell still appear in favour of a Liberal Democrat and Labour Party coalition those "in the know" say the chances of a deal have decreased dramatically over the last three or four hours.
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