Labour faces setback in by-election

By Tim Castle

NORWICH, England (Reuters) - Prime Minister Gordon Brown faces a test of his leadership this week when a looming by-election defeat in Norwich could reignite a plot to oust him.

A poor result for his Labour party threatens to embolden party dissidents who last month conspired to unseat Brown, before their rebellion fizzled out.

"If Labour lose the seat it will reopen questions about Brown's leadership," said Justin Fisher, Professor of Political Science at Brunel University.

With the Conservatives well ahead in national opinion polls, Brown is expected to wait until the last moment to call a parliamentary election -- which must be held by next June at the latest -- in the hope that an economic upturn might restore voters' faith.

"If that's not starting to be reflected in poll ratings then Labour may take the view that, if they are going to lose anyway, it's better to try and limit the damage with a new leader rather than be wiped out," Fisher said.

Labour MP Ian Gibson sparked next Thursday's by-election by quitting the Norwich North seat in anger over the party's decision to bar him from standing again.

Gibson, a popular former academic, had held the constituency with a comfortable majority since Prime Minister Tony Blair swept Labour to power in 1997.

But despite denying he had broken any rules, Gibson was ousted for allowing his daughter to live rent-free in a London apartment funded by parliamentary allowances and then selling it to her below market rates.