Fresh speculation over snap poll

There has been talk of an election since Mr Brown took over in June

Labour's preparations for any snap general election this autumn are "quite advanced", the prime minister has been told at a Downing Street meeting.

The party's manifesto "would not need much work" if Gordon Brown called a poll, a source said, with plans to line up financial donors "in good hands".

And Business Secretary John Hutton has told the Financial Times that Labour was "in a very strong position" to win.

Mr Brown can choose to call a general election at any time up to May 2010.

'Strongly united'

The two-hour Cabinet meeting at No 10 on Wednesday involved several people who would play important roles in any general election campaign but did not discuss possible dates.

John Hutton did not rule out the possibility of an autumn election

Ministers were told that Labour's private polling in key marginal seats showed the party had a strong lead over the Conservatives and Liberal Democrats.

And although its financial position remained "relatively difficult", it was felt that "if we needed to go for it, we could", the source added.

Mr Hutton, a former pensions secretary, was asked to lead the Department of Business and Enterprise in June, following a revamp of the Department of Trade and Industry.

He used his newspaper interview to say that Labour had "undeniably" shown its "competence" as a government.

"We're strongly united as a party... so all of the signals are positive for us," Mr Hutton added.

Pressed on whether Mr Brown would call an election this autumn, Mr Hutton did not rule out this idea, but said it was "a matter for the prime minister".

Michael Foot was leader of the Labour Party from 1980 to 1983

The Conservatives and Liberal Democrats have both said they have been preparing for, and are ready, for a snap election.

Senior Conservative backbencher and former science minister Ian Taylor suggested Mr Brown could win a snap election by a comfortable margin because voters do not see the Tories as "an alternative government".

He told the website of his local party association in Surrey that the electorate was "beginning to take interest in us", a "modest but crucial" change which should be attributed to leader David Cameron.

However, former Labour leader Michael Foot said it might be better to have a poll "a little later" than this autumn.

"I'm sure that the best thing Gordon Brown's new government can do is to give the country more months and more examples of how they're doing the job better, before calling an election," he told the Parliamentary Monitor.

Hailing achievements

The renewed speculation about a surprise poll being called comes as Labour ministers, MPs and activists prepare to head to Bournemouth for their party's annual conference.

Labour's campaign coordinator, Douglas Alexander said that over the next few days, "we've got to show that we have the vision to change the country for the better".

He said their priority for the conference should be "talking about the issues that matter to the country, not talking amongst ourselves as we have in the past".

However the preparations have not been without difficulties - Mr Brown has been accused of "closing down debate" after motions submitted for its conference were ruled out of order.

Some Labour MPs, constituency parties and unions are set to appeal to the party to reinstate the motions that were due for discussion next week.