Osborne will not stand as Tory leader

Shadow chancellor George Osborne today ruled himself out of the Tory leadership contest.

The 33-year-old's announcement will increase speculation that his friend and colleague David Cameron, 38, will stand as the "youth" candidate.

Mr Osborne and Mr Cameron are seen as the Tony Blair and Gordon Brown of their generation and today's decision has echoes of Mr Brown's decision in 1994 to give Mr Blair a clear run at the leadership.

Mr Osborne has told friends his youth and relative inexperience - he has only been an MP for four years - would count against him.

"I am making it clear I will not be a candidate. I have a big enough job being shadow chancellor, opposing Gordon Brown and developing an economic policy that broadens the appeal of the Conservative Party," he told the Daily Telegraph.

Mr Cameron, who is Michael Howard's favoured choice, has yet to state whether he will run. Party modernisers believe he is one of the few candidates capable of challenging bookies' favourite David Davis.

Meanwhile, Mr Howard faces a growing row over plans to change the leadership rules before he stands down this autumn. Under proposals to be unveiled next week, candidates must have the support of at least 20 MPs - or 10 per cent of the parliamentary party. The move is seen as a bid to thwart Mr Davis.