David Cameron’s growing Ukip crisis as second MP steps down

David Cameron faced a growing crisis in Tory morale today as another MP facing a Ukip challenge announced he will step down at the next election.

Dudley South MP Chris Kelly’s decision to quit the Commons comes days after the youthful Right-winger wished ex-Tory defector Douglas Carswell “all the best” as a Ukip by-election candidate.

It was seen as evidence of sagging Conservative spirits in key battleground seats and means nine of the 2010 intake Tory MPs have now declared they will not stand for re-election.

In further setbacks for Mr Cameron, it was revealed that between 50 and 100 Conservative MPs are planning to defy him by issuing personal manifestos at the May election promising they will vote to leave the EU. Some MPs hope they can strike local “non-aggression pacts” with Ukip by making such promises.

There were also signs that George Osborne is floating the idea that he is less opposed to leaving the European Union than he was in the past.

A new edition of a biography by journalist Janan Ganesh says the Chancellor has experienced an “unmistakeable hardening” of his views and has considered whether Britain might be better off outside an unreformed EU where the euro-members dominate. Treasury sources did not clarify Mr Osborne’s views this morning.