BRITAIN:MOUNTING GLOOM about the economic outlook and deepening doubt about Labour's ability to govern effectively have seen Britain's "feel-good factor" drop to its lowest recorded level and given David Cameron's Conservatives a 14-point lead.
Although commentators rightly note continued volatility in the public mood, the latest YouGov poll confirms that Mr Cameron is far outperforming all his post-Thatcher predecessors, while three-quarters of voters think the current economic downturn is likely to continue into next year, a possible election year.
While a majority (52 per cent) blame the "worldwide credit crunch" rather than the government, the so-called feel-good factor - the difference between those believing their financial position will improve over the next 12 months and the proportion thinking it will deteriorate - now stands at minus 52 per cent.
A total of 64 per cent say they disapprove of the Labour government's record, as against 21 per cent who approve, while a full 47 per cent say that if forced to choose, they would prefer to see a Conservative government under Cameron, as opposed to 35 per cent preferring a Brown-led Labour administration.
YouGov's findings for the Daily Telegraph came as house price growth in the UK fell to a 12-year low, while two of the biggest mortgage lenders increased rates to deter new customers and as an authoritative report by experts at Lehman Brothers rated the prospect of a recession at 35 per cent.
The poll also coincided with a call from Mr Cameron for a new economic strategy to help UK companies create jobs and opportunities to succeed. In a keynote speech, Mr Cameron said "a new economic dynamism" was needed "to attract the best and most productive firms to Britain" and keep them there. The Tory leader also stressed the need for better transport infrastructure and an improved education system in a speech dismissed by Labour as "more soundbite economics".
In an earlier interview with the Financial Times, Mr Cameron also urged reforms of the banking regulations to strengthen the supervision of liquidity and the way banks model risk. The Conservative leader also said he would like to reverse Tony Blair's "historic mistake" in signing the EU social chapter.
Mr Cameron also said the Conservatives had made a "mistake" in the 1990s by following the corporate agenda "too slavishly". While still "a party of free enterprise", he said they needed to break free from being identified too closely with business interests as part of the drive to move the party to the centre ground.