In perfect harmony: The enforcer and the defector

William Hague was warned last night, after the defection of the millionaire businessman Ivan Massow to Labour, that his right-wing populism could lose the Tories the next general election.

William Hague was warned last night, after the defection of the millionaire businessman Ivan Massow to Labour, that his right-wing populism could lose the Tories the next general election.

Mr Massow's move, disclosed in The Independent yesterday, sparked a new debate over the Tories' direction. He accused the party of bigotry, intolerance and stirring up "prejudice and fear" over asylum-seekers and gay rights.

Ian Taylor, the Tory MP for Esher, said: "The broad, compassionate, embracing conservatism that William Hague started out with as party leader has gone to the winds. We now are defined by who we hate - the euro, the EU, asylum-seekers, gays and criminals. When it comes to voting in a general election, people do not like parties who define their policies only by what they are against."

Steven Norris, a Tory party vice-chairman, told BBC Radio 4 he shared Mr Massow's views on Section 28. Although he insisted the Tories were "committed to inclusivity", he called for the party to develop "a more liberal agenda on a whole series of issues".

Yesterday, Mr Massow paraded his new allegiance at a photocall in central London alongside Mo Mowlam. The Minister for the Cabinet Office said after speaking to him she had "wondered why he wasn't with us in the first place".

Mr Massow said he had hoped the Conservative Party would become more compassionate and had talked to Mr Hague about it. "I feel it can't happen under his leadership."

The Conservatives said Mr Massow had made a "significant contribution" to the party but insisted he was not on their candidates' list and "at no time" had been.

However, the official Tory line was contradicted by a briefing note issued by Conservative Central Office to the party's MPs. It said: "Until yesterday Mr Massow was on the Conservative candidates' list for the next election."

Mr Norris said last December, when Mr Massow became his principal policy adviser: "Ivan is ideally suited to this senior position in my team, having already taken on a similar role in Conservative Central Office."