A new Conservative think tank to develop policies aimed at changing the way the party "thinks, sounds and behaves" is to be set up, supporters of Michael Portillo confirmed yesterday.

Francis Maude, who was Portillo's campaign manager for his unsuccessful bid for the Tory leadership, states in a letter to the Daily Telegraph today that preparations for the new policy forum are well under way and have the backing of leading members of the shadow cabinet.

The Telegraph reports that senior members of the shadow cabinet backing the policy forum include Archie Norman, Tim Yeo, Andrew Mackay, Peter Ainsworth and Theresa May.

Other Tory MPs who have supported the idea include Stephen Dorrell, Edward Garnier and Peter Lilley.