Modernisers urge Yeo to stand for Tory leadership

Tim Yeo, the shadow Trade and Industry Secretary, is being urged by supporters of Michael Portillo to stand as the modernisers' candidate in any contest for Tory leader.

Pressure for a Yeo candidacy to broaden the party's appeal emerged as Kenneth Clarke dismissed as "complete nonsense" reports that he was ready to contest the leadership for a third time.

Followers of the former chancellor said that he would become leader only if MPs agreed to a "coronation" rather than a contest to replace Iain Duncan Smith.

While this would be quicker than holding a ballot of MPs and party members, the chances of all potential candidates agreeing to it are remote.

"Ken Clarke knows he hasn't got the support in the country. You could call him a coronation chicken," said one of his critics.

If he does not run, some of his supporters are keen to join Mr Portillo's allies in backing a candidate who offers an alternative to Michael Howard and David Davis, the current front-runners. Bookmakers slashed Mr Howard's odds yesterday to make him joint favourite with Mr Davis.

Mr Yeo has impressed colleagues with his various briefs under William Hague and Mr Duncan Smith. Even if he lost in a leadership race, a strong showing could guarantee he becomes party chairman.

One MP said: "There is a real concern that any contest should not just be a right-wing choice and the section of the party that believes in modernising has to show that it exists in a positive way."

Mr Yeo made clear that he still supported Mr Duncan Smith. "If there were a large number of people who feel that the air should be cleared by a vote of no confidence, they have to write to Sir Michael Spicer and say so," he told The World at One on BBC Radio 4.

As MPs canvassed their constituency associations for backing to challenge Mr Duncan Smith, it was becoming clear that the leader's chances of survival were now slim.

Mr Duncan Smith's morale received a further blow when another millionaire donor, the Scottish businessman Irvine Laidlaw, said it was time for a "clear the air" vote of confidence.

With 25 names needed to trigger such a vote, rebels were confident yesterday that there were already 19 in the bag, with more likely by Monday or Tuesday at the latest.

One MP said: "I have canvassed more than half of my association executive today and only one didn't want a vote of confidence. If that pattern continues over the weekend, I will be writing to Sir Michael Spicer on Monday."

One of Mr Clarke's key allies, Ian Taylor, MP for Esher and Walton, said: "I think the party as a whole would need to persuade Ken Clarke."

In a separate move, which promises to reopen the party's feud over Europe, Tory MEPs are discussing plans to join a new, more Eurosceptic grouping in the European Parliament next year.