Critics lie low as loyalists predict backlash

Gordon Brown appeared at the weekend to have bought himself some time as his market interventions were welcomed by activists at the Labour party conference.

Many of the MPs who have sought to oust the prime minister were conspicuous by their relative silence ­following moves to ban short-selling and to speed Lloyds TSB’s takeover of HBOS. There was even news of a £1m donation from Harry Potter author JK Rowling to lighten the mood.

But to portray the atmosphere as one of untarnished unity would be wide of the mark. Behind the scenes lurked deep-rooted frustration at Labour’s low standing in the opinion polls, public dissatisfaction with the prime minister, and a lack of strategic direction. Now that many MPs have gone public with their unhappiness with the leadership, it will be hard to wash away the bile. Distrust and suspicion are rife, including within the cabinet. With so much poison in the system, some of Mr Brown’s critics claim only a leadership contest can cleanse it. One cabinet minister told the Financial Times: “The danger is that we stay loyal and just kill ourselves. I’m not vindictive. I want Gordon to succeed but I don’t think he has it in him.”

On Saturday night, Charles Clarke, the former home secretary was approached in a restaurant by Bob Ainsworth, the armed forces minister, who accused him of treachery – not only to Mr Brown but also his predecessor Tony Blair. It is a charge Mr Clarke, a critic of the prime minister, denies.

Ministers on the right of the party spoke with withering scorn of those on the left who want to hit the City with windfall taxes or higher income tax on their bonuses.

One minister warned of a leftward lurch which would leave Labour as the “loony tunes” party again. “You can see the direction of travel. This stuff is lead in the pencil of the left but it will never win elections.”

There were also private concerns that Mr Brown is taking credit too early, given that the financial crisis seems far from over.

Furthermore, there might still be negative fallout from Lloyds TSB’s takeover of HBOS, including thousands of job cuts and potential rises in mortgage costs.

When parties are soaring high in the polls, it is not so hard to maintain discipline. But Labour’s woes have prompted outspoken criticism of Mr Brown, with George Howarth, a former minister, calling him the worst prime minister since Neville Chamberlain. Another, Gisela Stuart, said “surely it can’t get much worse” – a stark contrast to the party’s 1997 election theme tune, “Things Can Only Get Better”.

Mr Brown’s camp said other MPs would turn on the rebels at the conference. “One minute these people are comparing Gordon to Neville Chamberlain, the next they’re going round playing the victim, complaining they’re being briefed against,” said an ally. “It’s a desperate attempt to spread the blame for the recent media coverage, and avoid the backlash they’re going to face in ­Manchester.”