The Conservative Party's ruling body has rejected calls for an investigation into allegations one of David Cameron's closest allies called activists "mad, swivelled-eyed loons".
However, the Conservative Party board did issue a stern warning to its leadership that it was too divorced from its grassroots.
The decision not to order an inquiry did little to draw a line under the row that has been dubbed "loongate".
Downing Street yesterday said Lord Feldman, the Tory party co-chairman who denies having used the phrase, had the Prime Minister's full support.
However, another senior party figure and donor Lord Ashcroft appeared to stoke tensions by saying the Tory party membership was not representative of the British public.
He said it would be "worse than regrettable" if anyone at the top of the party had insulted activists.
However, he added: "Tory members are, by and large, older and better off than voters as a whole, and their political priorities do not always match those of the people we need to convince if we are to win."
The call for an investigation was made by Brian Binley, MP for Northampton South and a member of the Conservative Party board. Arriving for a long-scheduled meeting of the body, which is chaired by Lord Feldman, yesterday he said: "I want an investigation by the party" and said such an inquiry should be swift with its findings made public.
He said while the group rejected his call for a probe "it was felt there was a need to look at the narrowing of the gap between the party in the country and the leadership".
Lord Feldman has denied making the comments during a chat with journalists following a dinner in a London hotel last week.
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