THE Tories face a race against time to find a new candidate to challenge Tony Blair for his Sedgefield seat in the next General Election.

With an election expected to be held in May, the Conservative party is searching for a new hopeful to stand in the Prime Minister's constituency after candidate Danny Kruger resigned as a result of a remark published in a national newspaper.

Mr Kruger, who works at the Conservative headquarters in policy development, was quoted in The Guardian as saying the party planned 'period of creative destruction in the public services'.

A Conservative spokesman said the comment was taken out of context but said that the decision to step down was 'to avoid any further misrepresentation of his views and any damage to the party.'

Mr Kruger, 30, had spent months canvassing in the Prime Minister's constituency and had won the widespread support of the pro-hunt lobby.

Party chiefs in London have drawn up a shortlist of potential candidates to forward to local members to select a replacement.

A spokesman said: "The constituency party will choose who will be the next candidate.

"This has to be prompt with just weeks to the next election."

Labour chiefs claimed Mr Kruger's comments had exposed the Tories' 'real agenda for the public services' and that the £35bn savings they have promised to make if elected will actually mean 'huge cuts'.

Darlington MP Alan Milburn, Labour's General Election co-ordinator, said: "He (Danny Kruger) is a man who has worked at the heart of Conservative policy development. He knows their real agenda, he has been crucial in shaping their plans for government.

"It is the authentic and shocking voice of the Conservative Party."