Jeremy Corbyn would make a better Prime Minister than George Osborne, public now believe

The Labour leader received a boost ahead of local elections next month

Labour leader Jeremy Corbyn (PA)

The British public now believe Jeremy Corbyn would make a better Prime Minister than George Osborne, according to the latest polling on the matter.

The Chancellor, believed to be David Cameron’s favoured successor as Conservative leader, has taken a significant polling hit in the weeks since his last Budget.

At the same time, Mr Corbyn’s ratings have continued to creep upwards.

Given the choice between the two politicians, Mr Corbyn is preferred by 34 per cent of the public compared to just 21 per cent who prefer George Osborne.

Leadership ratings are believed by some pollsters to be a better long-term indicator of how people will vote at general elections than regular voting intention polls.

Mr Corbyn is also preferred as PM to Theresa May by 30 per cent to 23 per cent, though Boris Johnson and David Cameron himself both retain leads.

The margins they have over the Labour leader are significantly reduced compared to previous surveys, however. Mr Cameron’s lead had been cut from 26 points to just 7 points in the space of four months.

David Cameron and George Osborne (AFP)

The PM has said he will step down before the next general election, meaning someone else will lead the Conservative party into the next general election.

The party’s MPs will vote on candidates until only two remain, at which point the decision will be put to party members.

Eurosceptic candidates are expected to have an advantage in the contest due to the leanings of Tory members.

The same poll showed Labour with a three-point overall lead in voting intention over the Conservatives.

It is not yet clear whether Labour's lead will translate into gains at the local elections next month, however.