Tories hit by fresh row

Michael Howard

Senior Tories are embroiled in an embarrassing row today amid claims that their election guru has already admitted defeat.

The Australian expert brought in to boost the Conservatives' campaign was forced to issue a public denial that he believes the party has no chance of success.

Lynton Crosby - whose arrival at Tory headquarters has triggered bitter infighting - claims there is "absolutely no truth" in reports that he believes the party will be routed at the polls.

But the suggestion that the election chief has doubts about the party's chances of victory threatens to further damage morale among Tory MPs.

It also threatens to overshadow a major party policy announcement on immigration today.

The latest row was triggered by a report in The Times suggesting that Mr Crosby believes the party is too far behind in the polls to win the next general election.

Mr Crosby is said to believe the Conservatives should concentrate on saving face.

The Times report claims the Australian election supremo privately believes it would be "madness" for the party to fight to win too many seats. Mr Crosby is said to believe party leader Michael Howard should focus on increasing his strength in Parliament by 25-30 seats.

Today the Australian - widely credited for the four election victories of his country's prime minister John Howard - tried to defuse the row with an outright denial. He said: "There is absolutely no truth in the claim by The Times that I do not believe the Conservatives can win the election.

"I have never had any such conversation with Michael Howard and I do not hold that view. I was not given an opportunity by The Times to refute this story."

He added: "The Conservative party has been making an impact on the issues of lower tax and controlled immigration over the past week, and the Labour Party will be wanting to do all they can to distract attention away from the issues that really matter to people."

But the claims offer insight into the mood at Tory headquarters. Insiders have claimed the party's co-chairmen, Liam Fox and Lord Saatchi, are "barely on speaking terms" and at loggerheads over key campaign decisions.

Both are said to resent Mr Howard's decision to bring his own election guru into Tory HQ.

A Populus poll last weekend suggested Labour was heading for another 160-seat landslide. The Conservatives have not attempted to deny rumours - first reported in the Evening Standard - that Mr Crosby ordered a new strategy cutting the number of target seats to be fought. Such a strategy implies an acceptance that the party cannot win.

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