David Cameron has dropped plans to force his shadow cabinet to axe their lucrative outside jobs in the new year, following threats of a revolt by senior Tories.

Conservative strategists remain concerned about the potential political damage the “part-time” nature of the shadow cabinet could cause. The onset of recession will add weight to Labour jibes that Mr Cameron’s “two-jobs team” is not devoting its full attention to mitigating the impact of the downturn.