THE British Labour Party continued its celebrations following its victory in the Staffordshire South East by election, with the announcement yesterday that two Conservative MPs have been involved in secret talks about defecting to Labour.
The prediction, by senior sources in Labour, adds to a disappointing week for the government, in which the Labour leader, Mr Tony Blair, said the by election showed "a drift, a lack of direction, weak and often incompetent leadership".
The two unnamed Tory MPs, who were prepared to join the Labour Party if the Chancellor, Mr Kenneth Clarke, had resigned over the government's plan to hold a referendum before Britain's entry into a single European currency, are said to be concerned about the Conservative's swing towards a more "Eurosceptic" stance.
While Mr Clarke did not resign, Labour sources admitted that there have been rumours about defections "for weeks". The source added: "Last week I would have put it at 60-40 against. Now I'd say it was 60-40 in favour."
The prospect of a general election, should the government's majority be wiped out, is enough to deter Conservative MPs from defecting to Labour, said Conservative Central Office.
In an interview in the Sunday Times the Labour Leader, Mr Blair, who returned from the US at the weekend, said he had reason to believe there were Tories "deeply dissatisfied with the way it is going."
The lack of confidence in the Tory party is clear. according to a survey of 100 of its backbench MPs conducted by the Sunday Times. The survey, carried out after last week's by election defeat, found that two thirds believed they would not win a general election.
. Labour's tax plans were at the centre of a row yesterday as its transport spokeswoman, Ms Clare Short, appeared to be at odds with the leadership by suggesting people on middle incomes should pay more tax. She said that people like her - on about £34,000 a year as an MP - should contribute more under a "fair" tax system. The Home Secretary, Mr Michael Howard said Ms Short had only told the truth "that Tony Blair is desperately trying to hide."