THE political renaissance of the British Prime Minister, Gordon Brown, has shifted from the realms of fantasy to serious speculation of an early election as his steady management of the economic crisis in Britain whittles away at the Tories' lead in opinion polls.

Talk of a summer poll has firmed after the decision by the Conservative leader, David Cameron, on Tuesday to jettison plans to match the Labour Party's spending promises if the Tories win government.

Mr Cameron's decision gives him the freedom to offer spending cuts and fully funded tax cuts, but it has also isolated him from the globally accepted strategy of injecting large short-term funds into the economy to encourage consumer spending.

Worse still, the Tories' commanding lead in recent opinion polls, including Mr Cameron's as preferred leader, has been steadily eroded. This has suggested for the first time in months that Labour may just have a chance to hang on to power.

Mr Cameron has warned that the Labour Party's "borrowing bombshell" to help boost consumer spending and the economy will turn into a "tax bombshell".

"We cannot afford a massive tax giveaway," he said.

But Mr Cameron's strategic position was immediately questioned publicly when the Institute of Directors called for a £20 billion ($46 billion) fiscal stimulus package - including a 3 per cent cut in income tax.

The Conservative leader has embarked on a mantra that voters will turn against Mr Brown's efforts to spend - and stimulate - Britain out of recession based on borrowings. Mr Cameron believes that voters will opt for fiscal responsibility.

But the polls seem to suggest that Mr Cameron's strategy is not working with voters as the Conservatives' lead in the latest Ipsos MORI poll has dropped again.

The Mori survey shows that Mr Cameron's advantage has collapsed to 3 points, with the Tories on 40 per cent - down 5 points - and Labour on 37 per cent, which is up 7.

The Liberal Democrats have dropped 2 points to 12 per cent and the pollsters say this lead means just a four-seat Tory Commons majority - an unheard of suggestion less than a month ago.

Labour is clearly frightened of igniting speculation of an early election after the disastrous decision last year by Mr Brown not to call the poll when he was ahead and likely to win.

However, a date in June is being bandied about. This would coincide with the European elections.