In the third and final round he formed an alliance with Eurosceptic
John Redwood, who would have become Shadow Chancellor and Clarke's deputy if Clarke had won the contest. This alliance of opposites earned Clarke little support from the eurosceptic right; Redwood was not able to deliver the votes of many of his followers after Lady Thatcher publicly endorsed Clarke's rival
William Hague in a photocall outside the House of Commons, and the latter won the vote comfortably. The contest was criticised for not involving, except in an advisory role, the rank-and-file members of the party, where surveys showed Clarke to be more popular.
Ironically, in
2001, after coming first in the parliamentary ballot, Clarke lost in a final round among the rank-and-file membership—a new procedure introduced by Hague—to a much less experienced, but strongly Eurosceptic rival,
Iain Duncan Smith. This loss, by a margin of 62% to 38%, was attributed to the former Chancellor's pro-European views being increasingly out of step with the dominant
Euroscepticism of the party membership. In Opposition, Clarke has so far refused to accept any Shadow Cabinet position, having first been offered a senior role by Hague in 1997.
When
Michael Howard stepped down after the Conservative's
2005 general election defeat, Clarke confirmed he would stand again for the position of party leader in autumn 2005, against the other expected contenders including
Malcolm Rifkind, David Cameron, David Davis and
Liam Fox. Refuting suggestions that at 65 he was too old to lead the party Clarke said that he was "overwhelmingly more popular" (amongst the voters at large) than his potential rivals.
http://news.bbc.co.uk/1/hi/uk_politics/4213544.stm Lord Tebbit accused Clarke of being "lazy" and said that voters would find his connections with the
tobacco industry distasteful.
http://news.bbc.co.uk/1/hi/uk_politics/4202196.stm
Clarke's lack of involvement in front bench politics since 1997 meant that, unlike his leadership rivals, he was not associated with the policies and electoral failures of the Tory party under the leaderships of
William Hague, Iain Duncan Smith and
Michael Howard. In his campaign speeches Clarke attacked
Tony Blair's "catastrophic error" in involving the UK in the war with Iraq
http://news.bbc.co.uk/1/hi/uk_politics/4203296.stm and accused the government of being "autocratic". "We have a Prime Minister who is more
George III than
Clement Attlee", he said.
http://news.bbc.co.uk/1/hi/uk_politics/4249964.stm
An
ICM opinion poll conducted for Newsnight on
5 September 2005 gave Clarke a 40% approval rating for leader (amongst the public) as against 10% for the man then perceived as his nearest rival,
David Davis. Nevertheless, Clarke was knocked out in the first round of the 2005 leadership contest, effectively ending his ambition to become party leader. Clarke polled 38 votes against 42 for Liam Fox, 56 for
David Cameron and 62 for David Davis. David Cameron became Conservative Leader after a run off with Davis in December 2005.
Cameron appointed Clarke to head a Democracy task force as part of his extensive 18-month policy review in December 2005, exploring issues such as the reform of the
House of Lords and party funding.
As a backbencher, Clarke has taken a number of non-executive directorships and engaged in non-political media work, including serving as
Deputy Chairman of
British American Tobacco (BAT) (
1998-2007) and Deputy Chairman of
Alliance Unichem, and has faced allegations over the activities of BAT in lobbying the developing world to reject stronger health warnings on cigarette packets and evidence that his corporation has been involved in smuggling.
http://www.guardian.co.uk/comment/story/0,,1554302,00.html He has presented several series of jazz programmes on
BBC Radio Four, including one on his namesake, bebop drummer
Kenny Clarke.