Duncan Smith put on 'probation' by rebel MPs

Rebel Tory MPs are giving Iain Duncan Smith until next May to improve the party's performance or risk provoking a leadership challenge before the next general election.

Disgruntled backbenchers on the right and the left of the party have in effect put their leader on "probation" because of the sacking of David Davis as the Conservative chairman and failure to speed reforms.

In the first sign of genuine discontent since Mr Duncan Smith took over, MPs have warned that next year's elections to the Scottish Parliament, Welsh Assembly and local councils must show a breakthrough against Labour. They hope next month's party conference in Bournemouth will provide evidence of new policies and a sharper attack on the Government.

Conservative Central Office and former followers of Michael Portillo played down reports that young libertarian Tories were planning a breakaway party. The Daily Telegraph reported yesterday that up to 50 activists, including parliamentary candidates, had discussed the creation of a "Start Again Party".

One right-wing former minister said the leader's decision to move Mr Davis was "ungentlemanly" and backfired in producing headlines drawing attention to Tory in-fighting. "I gave Iain the benefit of the doubt to start with. But moving an able chairman, together with a failure to get the polls moving, makes me wonder whether we should stick with him next year," the MP told The Independent. "There has to be real upward movement after May."

Another MP said colleagues could not wait until late next year for new policy proposals. "Everyone accepts we don't have to come up with policies overnight but it's been nearly a year since Iain became leader and we need to prove to the public we have some ideas," he said. "Iain should not forget that, when he looks around the parliamentary party, only around a third of them voted for him in the final round of the MPs' leadership ballot."

Mr Duncan Smith won 54 MPs' votes, coming second to Kenneth Clarke on 59 votes. Michael Portillo came third with 53 votes, but nearly all of his supporters voted for Mr Clarke in the conclusive poll of party members.

One backbencher in a marginal seat said most MPs had backed the slow but steady progress, but were shocked by opinion polls in June putting the party back on 32 per cent, 10 points behind Labour. "Many of us went away for the summer with a nasty taste in our mouths," he said.