Tory rebels warn PM David Cameron: Do well in May elections or face crisis

Tory rebels are warning David Cameron’s leadership will be plunged into crisis within weeks if the party gets a drubbing in the May local elections.

They fear the Conservatives will lose hundreds of seats as the party struggles to rally disillusioned activists and supporters — many angry over Coalition compromises and gay marriage — for the mid-term polls.

One minister is even arguing for Chancellor George Osborne to be axed, with the Government faced with trying to rescue the economy. “The Cabinet is too drab and it is failing to excite voters,” he said.

Philip Hammond would make a very good Chancellor if he was moved across from defence.” In May, the Tories will be defending more than 1,500 seats which were last fought in 2009 at a Conservative “high mark”.

They face losing control of several councils, including Derbyshire, Nottinghamshire and Lancashire — and Staffordshire, if Ed Miliband’s party has a good night. Gloucestershire, Warwickshire and Somerset could also be at risk of slipping out of Tory hands, while the party may also lose seats in Hampshire, Essex and Hertfordshire.

Tory rebel MPs are growing impatient amid claims they are just half a dozen away from getting the 46 names needed to trigger a vote of confidence in Mr Cameron. Some believe the May elections will prove to be a tipping point.

“Many of those who will lose their seats will be officers of local Tory associations,” said one MP. “This is going to be a very personal blow against those individuals inside the associations who hold the strings of power.”

A senior Conservative Party source stressed: “It’s going to be a tough fight. We start from an extremely high benchmark.”

Rebel MPs have set the Prime Minister five tests which include Britain keeping its AAA credit status, winning the Eastleigh by-election, a good Budget, avoiding a heavy defeat in the local elections and stopping the economy slipping into a triple dip recession.

A Tory backbencher said: “Two of the five tests have been failed and there are big question marks over at least two of the others.” Experts stress that Labour needs to make big gains at the local elections to prove that it’s winning back the trust of voters to govern again.