A new poll shows the public has become more optimistic about the economy since Christmas.

In good news for the government as it heads into the general election, the Populus survey for the Times on Wednesday showed that 45 per cent of the public believe the nation's finances are being managed well.

Labour is 23 points ahead of the Conservatives on this count, up since the new year and last month's Budget.

Economic optimism has improved among all sections of voters, particularly "soft" Liberal Democrat supporters who may yet change their mind ahead of May 5.

The poll taken over the weekend also puts the prime minister's party ahead of the Tories on all of its key issues apart from immigration and asylum.

But this remains only the fifth biggest concern to voters, while another Labour strongpoint - health - has risen in the public's priorities.