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SIMON HEFFER: The week he woke up to the folly of the modernisers

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Normal politics is slowly resuming after the death of Lady Thatcher, and things are looking pretty grim for her old party. Tories canvassing ahead of the local government elections on Thursday week indicate they will be thrashed.

Although Labour will score some big wins, the Conservatives' most worrying threat comes from Ukip. Right across the South of England, traditional Tory voters are turning to the fringe party, attracted by its Thatcherite policies.

While its anti-Europeanism is a major factor (particularly considering the prospect of a new, uncontrolled influx of immigrants from Romania and Bulgaria in the new year), UKIP is also offering more grammar schools, lower taxes, tougher public spending cuts, fewer wind farms and more defence funding.

David Cameron is under increasing pressure to embark on a radical, more Thatcherite agenda

Indeed, UKIP leader Nigel Farage mischievously claimed this week that his party would never have been formed in 1993 if Margaret Thatcher had not been kicked out as Tory leader.

An opinion poll also showed that the Tories would be much more popular today if she were still in charge.

Of course, this is deeply depressing for David Cameron, who is under increasing pressure to change course and embark on a radical, more Thatcherite agenda.

One of the influential voices urging a change of direction is the party's chief election guru, Lynton Crosby, an Australian pollster with a long record of success and reliable instincts about voters' concerns.

He is rightly worried about the number of traditional Tories who've become disaffected by the so-called 'modernising' agenda, with policies such as the legalisation of same-sex marriages.Any change of direction, though, won't be in time to stop the Tories' expected humiliation in next month's local elections. But it could reap dividends at the next general election.

The Thatcherite doctrine of letting hard-working families keep more of their own money must be adopted

Mr Crosby understands the importance of the party following Lady Thatcher's lead and reconnecting with working-class voters.

It can only do this by being the champion of aspiration - something that Labour, with its addiction to the Welfare State, will never be.

If, as expected, the Tories lose as many as 600 council seats on May 2, the calls for change will be unstoppable.

As a result, Mr Cameron would have to consider holding his promised referendum on Britain's membership of the EU as soon as possible, rather than waiting until 2017 or 2018.

He should also offer more incentives to the lower-paid by raising the threshold at which they start paying tax from nearly £10,000 (where it is now) to £15,000.

The Thatcherite doctrine of letting hard-working families keep more of their own money must be adopted. Iain Duncan Smith's recent brave welfare reforms should also be extended. Tactically, too, Mr Cameron must change tack. It's idiotic for him to attack UKIP supporters as 'fruitcakes' when, in truth, they are natural Tory supporters.

To avoid suffering any big electoral defeats, David Cameron must rein in the pernicious influence of the party's modernisers. And he needs to do that fast.

  Payback time for fraud Lord

It has been reported that disgraced Tory peer Lord Hanningfield, jailed for fiddling his Parliamentary expenses, shamelessly took £21,000 in Lords' attendance allowances plus £1,736 in expenses in the eight months after being released from prison. Yet he did not speak in a single debate nor table a single question.Meanwhile, I hear that Essex County Council is struggling to recover £286,000 worth of expenses from him that he incurred while council leader because ... he doesn't have enough money. Surely, that £21,000 of taxpayer-funded Lords attendance allowance could be repaid as a start.

The country owes a big debt to the man who was Lady Thatcher's private secretary in the last years of her life. Mark Worthington devoted himself to her over two decades, visiting her almost daily and running her office in the House of Lords. Churchill's private secretary, Anthony Montague Browne, was knighted for services to his country. Mr Worthington's service has been longer and more arduous. I hope David Cameron will ensure his devotion is properly recognised.

Change of heart After the Boston Marathon bombs, I couldn't help but recall when influential people donated to Noraid

After this week's Boston Marathon bombs, I couldn't help but recall a visit I made to the city nearly 20 years ago.

There I met countless influential people who saw nothing wrong with donating money to the  pro-IRA fundraising organisation Noraid, at a time when Irish terrorists were killing men, women and children all over the UK.

    More from Simon Heffer...   Why Drummer Rigby's killers should be charged with treason 24/05/13   The ugly truth is a smug Tory elite has sneered at the party faithful for decades 21/05/13   SIMON HEFFER: A serious contender? The grey man who could be David Cameron's nemesis 17/05/13   SIMON HEFFER: Think they can't axe David Cameron? Don't bet on it 10/05/13   The gentle giant of British cinema: If he'd been a Yank, he'd have won Oscars galore. If he'd been a Leftie, he'd have been knighted. Why Bryan Forbes was a cruelly unsung genius 10/05/13   SIMON HEFFER: There's only one way for Dave to stub out Farage 03/05/13   Could he trigger a snap general election? 26/04/13   Vote Red Ed, get Red Len as the Labour dinosaurs roar back to life 25/04/13   VIEW FULL ARCHIVE

That money dried up after 9/11, when America realised terrorism was not so glamorous after all.

First, politicians want to muzzle the Press and end freedom of speech in Britain. Now we learn that some of the pressure groups campaigning for such totalitarianism are receiving European Union funds.

The EU has long hated freedom of speech - threatening to stop the pensions of former employees who criticise it, sacking whistleblowers and even punishing MEPs who make anti-European remarks. It's another example of the anti-democratic nature of the EU that we must avoid here.

Just cool it, guv

The IMF, which has behaved disgracefully with its overtly political intervention to shore up the euro, seems to be regaining a bit of sense.

It has warned countries, notably the U.S., that quantitative easing - printing extra money to try to kick-start economic growth - could trigger another credit crisis of the sort that brought the global economy to its knees five years ago.

I hope Mark Carney, the incoming Bank of England governor, is listening. He seems to be a fan of quantitative easing - which history proves does not work because it simply bloats the money supply and ultimately risks causing inflation.

Labour has called for a 'debate' on how the country should honour prime ministers when they die. Since no one approaching the stature of Lady Thatcher is likely to die for many decades, I suspect another agenda.

Is Labour afraid that Tony Blair might one day be worthy of a similar ceremony to Lady Thatcher?

Is Labour afraid that Tony Blair, whom many party members loathe as much as Lady T, might one day be thought worthy of a similar ceremony - as the organiser of this week's funeral, Francis Maude, has suggested?

Insult to us all

It was gravely insulting that Barack Obama didn't send a member of his administration to represent America at Lady Thatcher's funeral.

Yes, it was gratifying that three former secretaries of state - James Baker, 82, Henry Kissinger, 89, and George Shultz, 92 - attended. But not to send the present incumbent, John Kerry, or Vice-President Joe Biden was plain rude.

Mr Obama once thought a pile of DVDs was a suitable present for PM Gordon Brown. He needs to learn how to respect an ally - especially as British soldiers frequently sacrifice their lives in America's wars.

This week's unemployment figures were bad, with a 70,000 overall increase. But most worrying was the fact that 20,000 of those are under 25. Youth unemployment - at more than 50 per cent in Spain and nearly 60 per cent in Greece - is tearing apart the social fabric of Europe. George Osborne must  immediately introduce tax incentives for firms to take on young people, such as making the wages of anyone under 25 allowable against corporation tax.




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