Clear blue water now divides the Conservatives from Labour and Reform UK, Tories claim as leader Kemi Badenoch prepares for a blitz of activity. The Conservatives say they are now the only party committed to "sound money" - and Mrs Badenoch is planning major interventions in the coming weeks focused on immigration and criminal justice.
The party intends to force a vote on a national inquiry on "rape gangs". This comes as polling shows nearly twice as many people say they would vote for Nigel Farage's party than for Mrs Badenoch's. Techne found 31% would vote Reform, ahead of Labour (22%) with the Conservatives and Liberal Democrats tied on 16%.
Sir Keir Starmer last week launched a fierce attack on Mr Farage, branding him "Liz Truss 2.0". Reform has pledged to scrap the scrap the two-child benefit cap - a move Labour ministers are reportedly considering.
A senior Tory source said "clear blue water has opened up between the high borrowing, high spending, increased welfare plans of the Labour Party and Reform, in contrast with the Conservatives - who are now the only party offering an approach focused on sound money, balancing the books, and the state doing less but better."
Richard Tice, deputy leader of Reform UK, shot back: "The only clear water is that Tories have drifted down into minor party status whilst Reform soars."
A Labour source said: "The Conservatives had 14 years to fix our economy, and what did they do? They let Liz Truss crash it.
"The Labour Government will not let that happen again. Liz Truss bet the house and lost, now Nigel Farage's uncosted plans risk letting that happen again.
"Only Labour has a plan to continue delivering economic stability, put more money in people's pockets and drive growth in all parts of our country, including through delivering three historic international trade deals."
Mrs Badenoch plans to continue challenging the Labour's Government's deal to hand sovereignty of the Chagos Islands to Mauritius, with a source condemning the "absurd situation where a Labour Government is giving away British territory and paying for the privilege".
The Conservative source said: "Kemi will also continue to make the case for a national inquiry into the rape gangs. She has been meeting more and more survivors over the past few months, hearing their stories and asking what they want to see from the government.
"The Conservatives are going to force a vote on the criminal justice bill when it returns to the House of Commons, so that MPs have to either vote in favour or against a national inquiry, and will have to explain that decision to their constituents."
A Reform UK spokesman said the party would "take no lessons on economic prudence from the Conservatives," adding: "Their dismal failure on the economy explains why they're rotting at the bottom of the polls."
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