IDS prepares major reshuffle

Tory Leader Iain Duncan Smith is to rush forward a strategic reshuffle of his shadow cabinet to reassert his authority amid tensions over the next manifesto.

He is set to reshape his team before a major pre-election drive in the spring, to clear out tired shadow ministers and promote key allies.

It comes as a rift opened over his plans to announce a series of specific tax cuts next spring.

Mr Duncan Smith is convinced the public is fed up with higher taxation and wants a full year to campaign on the issue before the next election, expected in 2005.

But the move is being resisted by shadow chancellor Michael Howard who has publicly refused to endorse his leader's promise to spell out details of how much families would save under the Conservatives because of uncertainties over the public finances.

The row has divided the shadow cabinet, with key modernisers including shadow home secretary Oliver Letwin and education spokesman Damian Green urging caution on tax.

Mr Duncan Smith, however, is being encouraged to be bold by senior party grandees, including Lady Thatcher's former image makers Tim Bell and Maurice Saatchi. Among shadow cabinet members, shadow deputy prime minister David Davis and Tim Yeo are also keen for tax cutting.

While both sides denied a serious row between Mr Duncan Smith and Mr Howard, an early reshuffle would provide a chance for the leader to stamp his authority on the discussions.

Mr Duncan Smith is also said by Tory insiders to be disappointed with the performance of some spokesmen, including his former leadership campaign manager Bernard Jenkin, the defence spokesman. Culture spokesman John Whittingdale is also vulnerable.

But rumours that party chairman Theresa May faces the sack faded after Mr Duncan Smith took pains to appear alongside her at the opening day of the conference in what appeared to be a strong endorsement.

"We are looking at a reshuffle quite soon instead of waiting until the summer, possibly before Christmas," said a party official. "The leader wants to get the team in place for a long campaign before the next election."

Senior MPs said it was "unthinkable" that Mr Duncan Smith would move or sack former Home Secretary Mr Howard, the most experienced pair of hands in the shadow cabinet and seen as a potential leadership candidate.

Mr Davis was today expected to declare that the Tories "must" cut taxes if they are to win victory. He was also announcing a sweeping review of local government financing to devolve power to town halls, coupled with a hint that the Tories could cut council tax bills.

The second day of the Blackpool conference was marred by fresh reports of high-level disquiet about Mr Duncan Smith's leadership.