Tories deny splinter-group conspiracy

Revived reports that up to 40 Conservative MPs are plotting to break away, form a new party and back a Blair government on Europe, were roundly repudiated last night.

While moderate Tory sources did not want to be identified, likely suspects told The Independent that it would be foolish to give up the fight for the soul of the Conservative Party, even if a right-winger such as Michael Portillo succeeded John Major as the leader of the Opposition in the Commons.

The one certainty shared by Conservative MPs from the left and right of the party this week was that Mr Major is "heading for a stunning defeat" in the general election.

There is also a well-founded suspicion on the Tory right that there could be as many as 20 Conservative MPs in the new Parliament who would indeed support Tony Blair in Commons votes on European issues - as Labour MPs backed the Heath government on Europe in 1972.

For the moment, however, they draw the line at that, and no Conservative MP yesterday recognised the name of the conspiracy party, the European Democrats, let alone speculation that Michael Heseltine or Kenneth Clarke might lead them into a political wilderness.

A large-scale political realignment, with the right of the Labour Party joining forces with the Tory left and Paddy Ashdown's Liberal Democrats to form a new centre-ground party would be a more attractive prospect. But there is no question of that happening if Labour wins the election. However, a fifth Labour defeat would be so traumatic that anything could happen.

Yesterday's reports - in the Mail and Sun - were built on the assumption of a Labour win and a Portillo takeover of the Tories. "Astonishing", "ludicrous", "garbage" were some of the responses of those who would know if a plot was taking place.

Certainly, Tory moderateshope Mr Clarke or Mr Heseltine would lead the resistance against a lurch to the right. "But we would not give up the fight so easily." They saw no reason why they should leave their party, "gift-wrapped" for Mr Portillo or John Redwood.

One Cabinet source said that while Mr Redwood or Michael Howard would be unacceptable to the moderates, he saw no reason why they could not "do business" with Mr Portillo. Another Cabinet source said he "shuddered" at the thought.

But the death wish was running strong yesterday. One leading moderate backbencher said: "For the country's sake, Labour has got to win. From the European viewpoint, the country needs a Labour victory."

A Euro-sceptic said it was assumed that a significant number of his colleagues would help a Labour Government get European legislation through the Commons.

But another source said: "As for a split, I can't honestly see it happening. The SDP failed to break the mould, and we must keep the Conservative Party united for as long as possible."