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spoke to the prime minister at Easter and said she felt it was the right time to go at the next reshuffle, the source told Reuters.

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don think it really matters who is Chancellor (of the Exchequer) of the country, said David Morrison, a strategist at GFT Global Markets. situation that we are in is not going to be changed by a change of Chancellor.

But a Brown ally, schools minister Ed Balls, is tipped as a possible replacement for Darling, and economic policy could become more left leaning as Balls may want to impress the grassroots of the party he wants to lead.

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Smaller parties, such as the UK Independence Party, the far right British National Party and the Green Party, are expected to benefit in this week elections.

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