Tory sceptics let Major off hook

CONSERVATIVE right-wingers said yesterday that their campaign of opposition to the Prime Minister had been called off as the prospects of a challenge to his leadership this autumn receded.

In the wake of John Major's veto in Corfu last weekend, one leading Eurosceptic, James Cran, said there would be no substantial opposition to European legislation at Westminster before the 1996 inter-governmental conference.

And John Carlisle, the backbencher who threatened to stand against him as a 'stalking horse', said that though Mr Major was still on trial, 'the stalking horse has probably for the moment gone back into the stable, and the chances of a leadership challenge have obviously receded'. He added: 'If Mr Major continues down this path, there will be no leadership challenge.'

Bill Cash, another leading Eurosceptic, said: 'I have no doubt that that is the view that many people will share.'

Mr Cran - the unofficial whip of the Maastricht rebels - said: 'I think the next significant issue is undoubtedly the review of the (EU) constitution in 1996. Other issues are not going to attract significant votes against. A small band may register a view but it will not be of the order of Maastricht'.

That means the Government can bring forward legislation to enlarge the European Union - including controversial changes to the rules on Qualified Majority Voting - without fear of a Parliamentary rebuff.

It also implies that measures to increase the budget, expected in the autumn, will prove less difficult for Mr Major than predicted.

Yesterday Mr Major reaffirmed his long-term commitment to tax cuts once the Government had built 'solid foundations for growth'. He told Conservatives in Blackpool: 'Our long-term plans are rooted in our old instincts: to cut taxes - when it is prudent to do so. Our instinct remains to give people the power to spend more of their hard- earned money as they like. In this, we are the only tax-cutting party.'

Mr Major's speech also contained his first side-swipe at Tony Blair, who is expected to be elected Labour leader later this month and is said to be considering educating his son at a grant-maintained school.

The Prime Minister said he wanted 'everyone - even Mr Blair - to be as free to send his children to a grant-maintained school as everyone else'.

The Prime Minister avoided mention of Europe but the Foreign Secretary, Douglas Hurd, said yesterday that there had been a halt to the 'internal bloodshed' within party ranks over Europe and that 'civil war' had been averted.

This week Lord Tebbit will call for a complete rethink of the approach of all European governments towards the EU but will be careful not to criticise Mr Major.