Lilley embraces loyalist role: Social Security Secretary casts himself as Major champion. Donald Macintyre reports

PETER LILLEY, Secretary of State for Social Security, last night cast himself in the role of a leading Major loyalist with an unequivocal appeal to fellow right-wing Tories to support the Prime Minister.

At a private dinner of the 92 Group of Tory backbenchers in London, Mr Lilley went out of his way to back John Major as the one leader 'who can lead a united party to victory in the next general election'.

The speech, which contained a telling reminder that Mr Major was the right's choice when Margaret Thatcher stood down in 1990, may be seen by some in the Prime Minister's circle as a mixed blessing since it implicitly raises the possibility of a change of leadership, if only to dismiss it.

But Mr Lilley's unequivocal message of support goes with the grain of a Guardian/ICM poll yesterday. Although the poll provided grim reading for the Tories - putting Labour at 51 per cent and the Tories at 26 - it also suggested that, if anything, they would fare even worse with an alternative leader.

Mr Lilley told the 92 Group - the most important caucus on the party's right: 'The vast majority of this group backed John Major to become Prime Minister. We made the right choice. He was the right choice to win the last general election.' Mr Major, he went on, was the best leader to fight the local elections in May and the European elections in June - which yesterday's poll suggests could be close to an electoral meltdown for the Tories - and was the 'only person' who could secure a general election victory with a united party behind him.

Unsurprisingly, Mr Lilley cited in support of Mr Major the Prime minister's Economist article last September which heartened Eurosceptics - and annoyed some European politicians - with its dismissive tone on European Monetary Union, and an unequivocal pledge that the 'nation state is here to stay'.

Mr Lilley's pep-talk came as Labour deliberately raised the profile of its campaign to become the main challenger to the highly vulnerable Tories in the by-election at Eastleigh, the seat left vacant by the death of Stephen Milligan.

John Smith, the Labour leader, told an upbeat and enthusiastic Tribune meeting last night that if there was a change of leader not only the Opposition but the whole country would demand an immediate general election.

Warning that despite the gratifying poll lead Labour must not be complacent, Mr Smith said: 'The Tories are on the run on tax. We must keep them on the run.'

And he again warned the party that it was 'not necessary' to make spending pledges when the party had no idea what the state of the economy would be at the general election.

The Labour leader added: 'Not giving figures does not undermine our sincerity. Giving figures when we do not need to, does give ammunition to our opponents.'

He also told the meeting that 'back to basics' was now a 'joke'.