Brown warns of risks for British economy, confirms Budget date

The British government will unveil a pre-election Budget in two weeks' time, Prime Minister Gordon Brown said yesterday, fuelling expectations of legislative ballots in May.

Brown added that Britain's economic recovery "remains very fragile" and was at a "crossroads". The budget will be held "in two weeks' time", Brown said. British media reported the date as March 24.

"While we have come through the worst of this dreadful storm, the waters are still choppy," Brown said.

David Cameron's main opposition Conservatives are slightly ahead of Brown's Labour in opinion polls before a general election expected to be called for May 6.

The economy is set to dominate the campaign.

The Conservatives had long held a double-digit lead in opinion polls but Labour has now clawed back ground since Britain emerged from recession, promising a close fight.

Britain emerged from recession in the fourth quarter of last year with growth of 0.3 per cent. The expansion in October to December 2009 followed a deep recession that lasted six quarters, the country's longest since records began.

The country also has a budget deficit forecast to be £178 billion for the current fiscal year.