The prospect of Gordon Brown calling an election next week has fallen away after a strong performance by the Conservatives at their annual conference, Labour sources told The Times today.

Although the official position of the Prime Minister is that he will not make a decision until the weekend, the early signs are the Tories made an impact on public opinion this week, and party insiders expect Labour’s lead to be heavily cut in polls published over the next 48 hours.

Polling has also suggested, apparently, that the public has no real appetite for a November election which, for hundreds of thousands, would mean turning out in the dark to vote.

Labour insiders also say that the inheritance tax plan from the Conservatives has gone particularly well in marginal seats, which are the election battleground.

If Mr Brown decides against going to the country, the Labour argument will be that although the Tories have won some short-term gain from their proposals to eliminate inheritance tax for all but millionaires, they will lose out over the long-term because they have not shown convincingly how the cuts can be funded.

The comprehensive spending review is still expected next week, regardless of Mr Brown’s decision on an election date.

Ministers know that if Mr Brown retreats he will receive criticism from his political opponents, and the media claiming that he has “bottled it”.

But ministers will say that they will spend the next six months or even 18 months trying to blow a hole in the Tory spending plans.

They are arguing that within weeks the fallout from the Labour and Tory conferences in Bournemouth and Blackpool will be forgotten and politics will return to an even keel.

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