Western Europe
Western Europe Great Britain National Affairs I-,N JANUARY, Peter Mandelson, Prime Minister Tony Blair's friend and political mentor, resigned for the second time, again because he concealed his dealings with a wealthy man. Despite predictions of trouble for a Labor government facing an imminent election, the party and the government emerged virtually unscathed. Chancellor Gordon Brown's budget, presented in March, which pro- posed modest tax cuts and increased spending for such purposes as the National Health Service, public transportation, and education, created a favorable atmosphere: the chancellor earned higher approval ratings than any of his postwar predecessors, and half the electorate thought Labor the party most able to cope with economic difficulties (the opposition Conservatives scored only 31 percent on the economy). The general election, held in May, confimed this assessment. Labor once again won overwhelmingly, with 413 seats against 166 for the Con- servatives and 52 for the Liberal Democrats. Despite its victory, Labor was not as popular as the bare election results suggested, as the two lead- ing opposition parties attracted 50 percent of the votes cast, as against 40.8 percent for Labor. Only the vagaries of the voting system secured Labor its large overall majority of seats. An immediate result of the elec- tion was the resignation of Tory leader William Hague, precipitating an election for new party leadership that brought the relatively unknown Iain Duncan Smith to office as head of the opposition. At the end of the year neither the new Conservative leader nor his shadow cabinet had made much of an impact.
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