A new centrist political party will "end in fiasco" and be a "classic political misjudgement", Lord Hattersley has said.
A network of donors and entrepreneurs have reportedly been secretly developing the new party for a year, with access to £50million in funding.
The Observer said that senior figures from the worlds of business and charity are involved, as well as supporters of both the main parties.
Ther project is reportedly led by Simon Franks, the multi-millionaire philanthropist and founder of LoveFilm.
It comes amid mounting speculation that David Miliband, the former Labour Foreign Secretary, could return to the front-line of British politics to lead a centrist party.
However Lord Hattersley,...