Portillo out & Tories forced into divisive ballot: Papers 18 July

Politics dominates the headlines this morning, the FT reporting that the Conservative party on Tuesday night faced another brutally divisive leadership contest after MPs chose the europhile Kenneth Clarke and hardline sceptic Iain Duncan Smith to put before a final ballot of party members. Michael Portillo, the shadow chancellor and initial favourite, was eliminated and immediately announced he was stepping down from front-line politics. The FT also writes that ministers are concerned that the financial problems of Eqquitable Life pensioners could deliver a blow to the government's st...