Rival parties may have questioned Michael Howard's political judgment over his approach to the Hutton and Butler inquiries, but for Tory co-chairman Liam Fox, his inspirational leadership has led to a "renaissance of political thought".

In a keynote speech last night, Dr Liam Fox said that Michael Howard's leadership will "bring about the opportunity for recovery" and prompt Tories to rediscover their "ideological self-confidence".

His morale-boosting tone will be a tonic for Tory insiders, but outside the Westminster village, talk of "recovery" and "rediscovery" are sharp reminders of the long depression the Conservatives have laboured under since disposing of Margaret Thatcher.

But in a reassuring restatement of traditional Thatcherite values, Dr Fox vowed that the next Conservative administration would scrap Labour's "intruder state" and roll back the state – with individual responsibility a central plank of policy.

"As we have become a wealthier nation, we should have extracted ourselves from the grasp of the state. But the opposite has happened - the government's intrusion into people's lives has not diminished. It has become all-pervasive," he said.

Dr Fox added: "A renaissance of political thought has occurred. It has become permissible, once again, to state openly the philosophical case for conservatism. We are rediscovering our ideological self-confidence - and not a day too soon, given the damage which Labour is inflicting on our way of life."

Since taking over from Ian Duncan Smith in November, Michael Howard has scored some success in his approach to immigration and performances opposite Tony Blair at the dispatch box. His shadow chancellor, Oliver Letwin, has also won plaudits for a seven-year spending plan and £30 billion cost-savings proposals which are both vague enough to be flexible, yet substantive enough to be credible – an delicate balance for Opposition.

However, Mr Howard has faced charges of opportunism for the manner in which he withdrew support from the Butler Inquiry. The Folkestone and Hythe MP said that the "unacceptably restrictive" focus of the probe – that it would consider intelligence systems rather than the individuals acting upon such information – made it unworthy of support.

However, his opponents slammed this as "shameless opportunism", coming as it did in the wake of the failed legal action against Katherine Gun and Clare Short's UN bugging allegations. Also, the inquiry's remit was spelt out in a press statement issued shortly after its creation on February 3.

Mr Howard's leadership was also left slightly bruised when the Tory member of the inquiry panel, Michael Mates, refused to follow the party line and said that he intended to stay put.

In January, Mr Howard attracted criticism for pre-empting Lord Hutton and questioning the Prime Minister's honesty in the Commons days before the publication of the law lord's report. The government, and Number 10, was vindicated and Mr Howard was forced to fully accept the findings of the inquiry.

(gmcg)