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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Arizona immigration law protesters urge action 25 Apr 2010 Police barred from penis enlargement 23 Apr 2010 U.S. backs plan to stop leaking Gulf of Mexico oil well 25 Apr 2010 Strong quake in Taiwan, Philippines; no damage reports 12:39am EDT US Senate Republican calls for strict swaps rules 24 Apr 2010 WRAPUP 5-Protesters block police in deepening Thai crisis 10:45am EDT Potentially deadly fungus spreading in U.S. and Canada 22 Apr 2010 Burglars break into prison to rob absent inmates 21 Apr 2010 Greek dockworkers strike as economic reforms loom 6:55am EDT Legalizing pot may kill buzz in California enclave 22 Apr 2010 Police barred from penis enlargement 23 Apr 2010 Potentially deadly fungus spreading in U.S. and Canada 22 Apr 2010 Arizona immigration law protesters urge action 25 Apr 2010 Rich world may face next downturn with dull weapons 22 Apr 2010 U.S. students suffering from Internet addiction: study 23 Apr 2010 Obama fulfills Cairo pledge with entrepreneur summit 7:46am EDT Strong quake in Taiwan, Philippines; no damage reports 12:39am EDT PREVIEW-Sand's puts $5.5 bln bet on Singapore and Asia 5:17am EDT Hertz to buy Dollar Thrifty for $1.2 billion 5:38am EDT U.S. backs plan to stop leaking Gulf of Mexico oil well 25 Apr 2010 Conservatives set new goals in tight election Estelle Shirbon LONDON Mon Apr 26, 2010 11:07am EDT Related News Analysts' view: UK faces parliament with no party in charge 9:20am EDT Workers erect an opposition Conservative Party election poster showing party leader David Cameron in Manchester, April 26, 2010. Credit: Reuters/Phil Noble LONDON (Reuters) - Britain's opposition Conservatives launched a new drive Monday to dislodge the ruling Labor Party from some of its strongholds in a May 6 election that has been thrown wide open. World The center-right Conservatives are battling to oust center-left Labor from government after 13 years. Both parties face a surprise challenge from the centrist Liberal Democrats, or Lib Dems, whose popularity has surged in the last 10 days. The Conservatives are ahead in the polls, but the Lib Dem bounce to second place could deprive them of the overall majority of parliamentary seats that they need to govern alone. The polls are pointing to a "hung parliament" in which no party has an overall majority of the 650 seats. The Conservative nightmare is that this could allow Labor to cling to power by forming an alliance with the Lib Dems. Conservative leader David Cameron said his party had added 20 new names to the list of target seats it hopes to win from Labor, suggesting this could tip the balance and deliver a Conservative majority. "What we've seen because of the meltdown in the Labor campaign is an opportunity to work even harder in certain seats which were ... quite safe Labor seats but they are not any more," he told a news conference. "They are up for grabs. We are aiming for a majority government. That is why we've extended our battleground." Cameron denied suggestions that this meant that the Conservatives were now pessimistic about winning target seats held by the Lib Dems. "We are working very, very hard to win seats off the Liberal Democrats in many parts of the country," he said, attacking that party as "misguided," "confused" and "out with the fairies." Labour's election co-coordinator Douglas Alexander dismissed Cameron's claims as "Conservative spin" and said there was little evidence the Lib Dems had won over Labor voters. "We are picking up very little direct transference of Labor support for the Liberal Democrats in either our marginal seats or across the country," he told a news conference. "There is however a significant level of undecided voters." Under Britain's electoral system, victory hinges not on the breakdown of the national vote but the number of parliamentary seats won by each party. Parties usually target marginal seats which can change hands with only a small swing in votes. Cameron says a hung parliament would usher in a period of instability, with parties wrangling over political posts and pet policies rather than tackling Britain's record budget deficit. His concerns are widely shared by businesses, according to a survey from the British Chambers of Commerce released Monday that found two thirds of them were worried about the potential impact of a hung parliament. The Conservatives are on course to have 289 lawmakers in the 650-seat parliament, with Labor on 234 and the Lib Dems on 94, according to a projection from the Politics Home website that was based on all previous opinion polls. Swiss Bank UBS said in a research note Monday that a coalition government would likely agree measures to tighten fiscal policy, and the biggest impact on sterling would come if a single party won a majority and tried to cut the budget deficit too quickly. For the Lib Dems, who say the voting system is biased against them and favors the two bigger parties, a hung parliament could offer a once-in-a-lifetime chance to obtain electoral reform in return for their support in parliament. Labour's Prime Minister Gordon Brown has proposed a referendum on changing the voting system, signaling that he would be open to negotiations with Lib Dem leader Nick Clegg. Cameron, hoping he will not need Clegg's support to govern, has rejected electoral reform. World Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. More from Reuters Protesters block police in deepening Thai crisis BANGKOK (Reuters) - Protests and blockades in the provinces on Monday, and a grenade attack against a politician, deepened fears of a civil conflict in Thailand after the prime minister rejected demands by anti-government protesters. | Video Iraq panel wipes out votes, result in doubt | Video Sudan elects wanted Bashir as president Japan PM support falls as base row heats up Deadly new Russian weapon hides in shipping container Israeli opposition sees Jerusalem settlement freeze » More Top News Reuters Summit: Reshaping Wall Street Top regulatory newsmakers including Gary Gensler and Mary Shapiro talk to Reuters in a crunch week for Washington's plan to overhaul the banking landscape. 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