Labour narrows battle for key seats

Labour is slashing the number of its "key marginals" in a desperate bid to fend off the Tory challenge at the general election.

A cash crisis and worries about a late poll surge by Michael Howard have forced the party to focus its funds on seats with majorities below 5,000, the Evening Standard has learned.

MPs above the cut-off point have been told they are being downgraded from "key marginal" status to "stand-alone marginal" status and cannot have access to central funds.

The money will instead be spent on protecting the swathe of constituencies needed to give Tony Blair a decent Commons majority of more than 80.

Some MPs have been told in recent days there is simply not enough money to give them extra help.

Fabian Hamilton, Labour MP for Leeds North East, told colleagues he has been downgraded to a stand-alone marginal because his majority is just over 7,000. Cleethorpes MP Shona McIsaac, with a majority just over 5,000, has also said the party is not coming up with the funds she expected.

Labour chiefs have been rattled by what they call an "unprecedented level" of Tory spending in key marginals, with posters and leaflet blitzes in in the past few weeks.

Downing Street has called in millionaire Lord Levy to raise fresh funds from wealthy backers.

In recent days Labour has sent out emergency fund appeals to its members, with author John O'Farrell raising £50,000 with one email plea.

Party general secretary Matt Carter has asked for another £50,000 by the beginning of this week. He wrote that the cash would be "an incredible boost to the campaigns in our key seats", adding: "The Tories have always had a money advantage. They're using that advantage right now in constituencies where our majorities are slim."

Party chairman Ian McCartney has also made an appeal for £1 million to boost the "ground war" of leaflets and other material as opposed to phone canvassing.

Party strategists are nervous about polls showing Labour's lead as small or non-existent. YouGov for the Daily Telegraph today shows Labour and Tories neck-and-neck on 36 per cent and the Lib-Dems on 20. But ICM for the Daily Mirror put Labour on 38 points to the Tories' 33. Labour MP for Grimsby, Austin Mitchell, revealed the downgrading of MPs from "key marginal" status in his weblog. "The cut is because we're short of money," he writes. "That would account for Shona [McIsaac]'s complaint she's not getting any support."

There have been rumours at Westminster - denied by party officials - that Labour has all but written off seats with majorities of under 3,000 to focus on safer prospects.

Observers have been struck by huge amount of effort being poured into Battersea, where Martin Linton has a 5,053 majority. In recent weeks, Mr Linton's seat has been used for high-profile visits by Tony Blair, Gordon Brown, David Blunkett and Commons leader Peter Hain.

By contrast, Putney where Labour MP Tony Colman has a slimmer majority of 2,771 has not attracted such a procession of big hitters.

A Labour spokesman failed to respond to questions about key seats being cut. But a Labour official insisted: "We are doing ministerial visits to all of the marginal seats. None are being written off."