Crisis in the mines: Heseltine takes lead on pits: Full Cabinet did not approve closures

FACING Tory anger and unrest over pit closures, the Government rejected calls for an immediate cut in interest rates yesterday and reaffirmed its determination to reduce inflation.

Michael Heseltine took the lead in defending government economic policy and urged Cabinet colleagues to support the closures publicly. The President of the Board of Trade's bullish performance increased the impression of drift by the Prime Minister and Chancellor.

Sir Edward Heath, the former prime minister, warned John Major last night that Britain was facing a 'very considerable crisis' and did not have long to tackle it. 'They have got to throw all the dogma overboard and face reality. Inflation is low but to go on saying we are fighting inflation doesn't deal with the real problems.'

Downing Street confirmed that the full Cabinet had not approved the pit closures until yesterday's weekly meeting. Sir Edward, whose administration was brought down by a miners' strike, said he was surprised the Cabinet had not discussed it and called for a rethink.

'It is up to the Cabinet to make their views known and demand for the whole thing to be reviewed,' said Sir Edward.

Tony Newton, Leader of the Commons, denied the Government was drifting, and said the decision had been agreed by the ministers 'fully concerned' with the policy, including Mr Heseltine. David Hunt, Secretary of State for Wales, said last night he had been consulted but was surprised by one pit on the list.

Other ministers consulted were Ian Lang, Secretary of State for Scotland; Gillian Shephard, Secretary of State for Employment; and Michael Portillo, Chief Secretary to the Treasury. John Major and Norman Lamont were also closely involved.

The turmoil over closures overshadowed a deep rift over economic policy which threatens to strain the loyalty of some Cabinet dissidents. Dismissing calls for a short-term boost to the economy, Mr Heseltine said: 'It will lead to a depreciation in the value of our currency, rising inflation and rising interest rates in this country and once more into the cycle of stop go, which has been the besetting, underlying evil of post-war British economic management.'

The Government was surprised by the backlash among Tory MPs. Mr Heseltine admitted to the Cabinet that the Government had yet to win the argument. He urged colleagues to defend the closures in speeches and broadcasts.

Kenneth Clarke, the Home Secretary, whose father was a Nottinghamshire miner, said later: 'I know exactly what it represents in Nottinghamshire. I share all those emotions.'

Mr Heseltine will attempt to quell unrest on the Tory back benches in a statement to the Commons on Monday. He will take the lead for the Government in a debate called by Labour on the closures on Wednesday, when a protest march will be made to Parliament.

Labour sought to maximise the growing revolt among Tory MPs by tabling a motion limited to deploring the closures. Winston Churchill, MP for Davyhulme, described them as 'nothing short of criminal'. William Cash, MP for Stafford, accused the Government of callousness after leading a delegation to the Minister for Energy, Tim Eggar.

John Smith, the Labour leader, said it was 'astonishing and appalling' that the full Cabinet had not been consulted. Paddy Ashdown, the Liberal Democrat leader, said: 'The national outrage is stronger than over the poll tax.'

There was an element of farce after yesterday's Cabinet meeting. When John Patten, Secretary of State for Education, failed to find his official car, a journalist shouted: 'Does the Government know where it's going?'

(Photograph omitted)