Boost for Davis as Willetts pulls out of Tory race

The news came as a shock to Ken Clarke's campaign team and led to speculation that Mr Willetts, who is nicknamed "Two Brains", will be made shadow Chancellor if Mr Davis wins. One Clarke campaigner said: "It makes you wonder what David Davis has promised to get David Willetts' support."

The shadow Trade and Industry Secretary, highly regarded as a Tory intellectual, carried only around five supporters, but his backing will give Mr Davis renewed momentum by widening his appeal among "One Nation" Tories.

Mr Davis praised Mr Willettsin his keynote speech on Wednesday, paying tribute to his emphasis on social renewal. In a further move to widen his support, he also paid tribute to another "One Nation" challenger, David Cameron, for supporting marriage.

A Cameron supporter said: "It's a real shock for Ken Clarke's team. They were hoping that they were going to get Willetts and we've been expecting him to pull out for the past two weeks. But for him to go across to Davis is a real blow to Ken."

Announcing that he would not be a candidate for the leadership, Mr Willetts said: "I believe that David Davis is the right man to lead the Conservative Party. He has the experience and the authority to be an effective leader.

"He has demonstrated that he has the support of many senior figures representing different strands of opinion within the party. He is widely respected and he has the credibility to unite the Conservative Party once the leadership election is over. He recognises the scale of the task ahead of us and he has the energy and determination to lead us to victory. And, as we have seen in recent months, he has the empathy, understanding and gravitas to address the challenges facing Britain and the wider world."

The Cameron camp are hopeful that some of the Willetts supporters who are "modernisers" will come across to them in time for Mr Cameron's formal leadership launch before the Tory party conference. They dismissed speculation that Mr Cameron could be the next to step down from the race. "There have been rumours he would back Ken but he won't be backing down," said a member of Cameron camp.

The manoeuvring overshadowed an attack on Tony Blair's autocratic style of government by Mr Clarke. He said Mr Blair was responsible for "a toxic mixture of misgovernment", lowering the standing of politics and politicians with his "obsession with style over substance".

He said it would get worse under Gordon Brown, who he described as an "obsessive control freak". The former chancellor gave a commitment to restore respect for government by strengthening the role of the Cabinet, and limiting the influence of special advisers. "We must sweep away the trappings of presidential government," said Mr Clarke. "The Prime Minister's department that Mr Blair has created in Downing Street must be dismantled. The Cabinet Office and not the Prime Minister's office should provide the coordinating machinery for government.

"The status of the senior Civil Service should be restored. That means giving the Cabinet Secretary back his role as the Prime Minister's most senior adviser. Special advisers should no longer be able to direct civil servants."

Yesterday, Sir Malcolm Rifkind, the former foreign secretary, laid claim to the "One Nation" crown at a meeting attended by an estimated 1,000 supporters by calling for the Tories to give higher priority to the needs of the poor and ethnic minorities, with a more independent and confident foreign policy.

"One Nation principles will require radical simplification and reform of the tax system to take the poorest out of tax," added Sir Malcolm.