I'm not standing for leader - Clarke

Clarke: Has taken 'no part' in Iain Duncan Smith controversy

Kenneth Clarke has dismissed claims he is planning to stand for the leadership of the Tories as "complete nonsense".

The former chancellor said he had "no intention" of taking part in the controversy over Iain Duncan Smith's role.

He was speaking as some Tory donors reportedly threatened to withhold cash support for the party if Mr Duncan Smith remains leader.

I haven't told anybody that I'm going to stand in the Conservative leadership election Kenneth Clarke

One donor, millionaire businessman Irvine Laidlaw, told BBC Radio 4's PM programme that a vote of confidence "might not be a bad way to go" for Mr Duncan Smith.

He said certain elements of the party had spent "too much time attacking" the Tory leader "and therefore I believe that we might be better off having a vote of confidence".

Shadow home secretary Oliver Letwin urged his party to "calm down and move forward", claiming that this would convince the donors to start giving again.

On Friday, The Times reported that Mr Clarke was ready to stand against Mr Duncan Smith in a leadership contest.

'Navel-gazing'

But this was swiftly denied by Mr Clarke. "It's complete nonsense. I haven't told anybody that I'm going to stand in the Conservative leadership election.

"I've been taking no part at all in all this controversy over Iain Duncan Smith and I don't intend to do so."

Many commentators have suggested Mr Clarke's pro-European views and his stance against the Iraq war may undermine any chance he has of garnering support from backbenchers and grassroots Tories.

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Meanwhile Mr Letwin argued that his party should stop navel-gazing over its leadership and get back to serious politics.

He also acknowledged that his party's long-term financial future depended on "restoring confidence".

He said donors would "change their minds" about whether to give money to the Tories "if they see that the party is getting back together and we are getting back to the business of debating how we run our public services on a smaller tax burden - the real issue of the election".

That was a message echoed by Conservative trade spokesman Tim Yeo who insisted he believed Mr Duncan Smith was "the right person" to lead the party.

Tory donor, Sir Tom Cowie, founder of transport company Arriva, was said to have expressed doubts about whether Mr Duncan Smith "has the ability or the charisma to compete against Tony Blair".

But he later denied suggestions that he intends to stop giving cash to the Conservatives.

'Clear the air'

On Thursday, millionaire businessman John Madejski, chairman of Reading Football Club, called for a leadership contest, and Charles Wheeler, a £5m donor and spread betting tycoon has said there was an overwhelming case for replacing him.

Duncan Smith is trying to focus on policies

Mr Madejski said a leadership vote would "clear the air" after recent rumours of plots.

But Lord Hanson - who said he would continue to help fund the Tories - attacked what he said was a minority of "dissatisfied MPs" who opposed Mr Duncan Smith.

"Tory MPs thrive on suicidal disunity," he told Today.

Another former leadership candidate Michael Portillo, asked whether Mr Duncan Smith would be in charge at Christmas, admitted he did not know which way it would go.

Rumours

On Thursday, Mr Duncan Smith laughed off rumours of plots during a visit to the East Midlands.

He said: "There is no question about my leadership there is only a question about who will be leading this country after the next election."

He added: "It will be me."

There has been speculation for weeks about a leadership challenge to Mr Duncan Smith.

"There is no question about my leadership" Iain Duncan Smith

For a confidence vote to happen, 25 MPs would have to write letters to Sir Michael Spicer, the chairman of the 1922 Committee, which represents all Tory backbenchers.

If Mr Duncan Smith lost that confidence vote on a straight majority, he would have to resign and could not take part in the ensuing leadership battle.

If he won, he could not face another leadership challenge for a year.

Once there is a leadership contest, MPs hold a series of votes to whittle down the field to a choice of two for all Conservative members.