Q&A-What next in politics?

LONDON (Reuters) - Prime Minister Gordon Brown has set out his priorities for the last few months before a general election, promising measures to fight youth unemployment and boost the supply of affordable housing.

The 127-page "Building Britain's Future" document is seen as the blueprint for ruling Labour's manifesto ahead of the election Brown must call within a year.

The Conservatives, led by David Cameron, are ahead in opinion polls and are tipped to return to power for the first time since 1997.

* WHAT ARE THE MAIN ISSUES RUNNING UP TO THE ELECTION?

There are three major issues.

i) Pulling Britain out of the worst recession since World War Two. Former chancellor Brown has won plaudits for his efforts to coordinate a global response to the credit crisis. However, Conservatives taunt him over his claims to have eliminated "boom and bust" from the economy.

Labour is hoping the economy will start to recover by the end of the year, but rising unemployment could dampen voter morale.

ii) Public spending. Faced with lower income from financial services and rising welfare payments, Britain's budget deficit is forecast to reach 175 billion pounds this year -- more than 12 percent of GDP.

Labour says the Conservatives are planning 10 percent cuts in many public services, while the opposition say Labour is not being straight with voters about the state of the public finances.

iii) Cleaning up parliament. All the major parties have been damaged by disclosures that members of parliament (MPs) billed the taxpayer for everything from moat cleaning to dog food.

Labour has been worst hit by the scandal after presiding over a discredited system, but the turmoil benefited fringe parties in recent local and European elections and adds a further element of unpredictability to the election.

* WHEN WILL THE ELECTION BE HELD?

The timing of the election is in Brown's hands. The last possible date is June 2010 when parliament's five-year term ends, but most commentators expect a vote in early May. Labour will be hoping that the economic outlook will be brighter then.

* WILL BROWN STILL BE LABOUR LEADER?

Brown weathered an internal revolt that threatened his leadership earlier in June and reshuffled his government after a series of resignations. The annual party conference in late September could be a further focal point for dissent, but Labour is unlikely to ditch Brown just a few months before an election.

* IS A CONSERVATIVE WIN INEVITABLE?

The Conservatives appear certain to end their long spell in the political wilderness. But they took less than 30 percent in the European elections on June 4 when the UK Independence Party (UKIP) won second place ahead of Labour. UKIP is not represented in the national parliament but its performance showed that fringe parties could take votes from the mainstream parties at the next election.

A hung parliament in which neither of the main parties commands a majority would make the smaller opposition Liberal Democrats the kingmaker. The Lib Dems are seen as more natural Labour allies but have not indicated what they would do if they were cast in this role.

(Editing by Louise Ireland and Kate Kelland)