Duncan Smith: Party's inner workings are dull

Reports of Conservative infighting have resurfaced this week over the departure of a senior Tory official who was seen as a key moderniser.

Party chairman Theresa May on Wednesday denied crisis talks were under way, but officials later had to admit she was discussing "various matters" with members of the party's board.

On Thursday, Mr Duncan Smith launched an attack on the government's 1p increase in National Insurance, which comes into force in April.

In his speech to businessmen in Washington, Tyne and Wear, Mr Duncan Smith accused Labour of "six years of waste and incompetence".

Ministers had "squandered" the strong economy they inherited from the previous Conservative government, he said, arguing the planned tax rise should be ditched.

'Jobs tax'

The Tory leader said the �7.4bn the government was planning to raise for the NHS from the National Insurance increase would be wasted because the much-needed reforms were not in place.

"This is nothing short of a tax on jobs - plain and simple. Overall, it's the equivalent of an effective 3p increase on the basic rate of tax," he said.

"The government must think again before more damage is done and scrap this jobs tax now before this spending goes the same way as the last."

Mr Duncan Smith pointed to the rise in the national tax bill from �270bn to �380bn since 1997 as a sign that Labour was reverting to type.

My constituents are dismayed at infighting which appears to be causing damage which is purely self-inflicted Michael Portillo

"We are witnessing the death of New Labour and the resurrection of Old Labour - the whole, hopeless cycle of tax-and-spend-and-fail. We have to break that cycle," he added.

Opponents say the speech marks a change in direction for the Tories - back to a more right-wing agenda after earlier efforts to campaign for the most vulnerable in society.

Mr Duncan Smith said: "We are determined to spend your money more carefully - we will take a different approach to the public services."

Lib Dem spokesman Matthew Taylor said: "IDS mark II is opposed to the doctors and nurses the NHS needs, proposing tax cuts instead."

'Fixations'

Labour's Paul Boateng, said: "Iain Duncan Smith's speech today is a straightforward shift to the right.

"It is proof that they have ditched any pretence to believe in funding the NHS properly. And it confirms their plan to cut spending by 20% 'across the board'."

Reports of a new row within Conservative ranks focused on the battle between so-called modernisers and traditionalists.

Earlier, Mr Duncan Smith said the British public simply did not understand those terms and accused many journalists of being "fixated" by the inner workings of his party.

Tories accuse ministers of wasting money in schools

"This is the most uninteresting subject I can imagine," he told BBC Radio 4's Today programme.

Instead, people wanted to know what alternatives the Tories were offering to the government failures, he said.

The row comes despite some of the party's best poll ratings in recent months, although MORI chairman Bob Worcester said the party was making no real ground.

Mr Duncan Smith refused to say why he had dismissed his chief executive, arch-moderniser Mark MacGregor, who last week moved to head up Steve Norris' campaign to be London mayor.

Deepen

Internal changes were "meaningless", said the Tory leader, although they have provoked concern from former leadership contender Michael Portillo.

Mr Portillo told the Daily Telegraph newspaper: "My constituents are dismayed at another round of infighting which appears to have come from a clear blue sky and to be causing damage which is purely self-inflicted."

Mr MacGregor has been replaced by former MP Barry Legg, seen as a traditionalist.

He has denied suggestions he was close to defecting to the UK Independence Party before the last election.

The changes have pleased traditionalists. Former cabinet minister John Redwood, who is tipped for a return to the party's front bench, said the changes would help the party "move on" and deepen its programme.

Later, Mr Duncan Smith was asked if Tory chairman Theresa May was safe in her job.

He replied: "Absolutely. Theresa May is doing a fantastic job and will continue to do a fantastic job."