Iain Duncan Smith should resist pressure from party modernisers, Lord Tebbit has said.

In an interview with the Independent on Monday, Tebbit said the man who took over his Chingford constituency should stand by his principles.

"Iain's instincts are generally those of the traditionalists, but he is perhaps over-anxious to keep the party together by seeking to find compromises between the wings of the party," he said.

"That has let outsiders gain the impression that the party is uncertain of itself."

Lord Tebbit, who was a key member of Margaret Thatcher's cabinet, claimed part of the party's failure to improve in the polls was due to the fact that the party "is still trying to find its identity."

Although failing to deliver a ringing endorsement of Duncan Smith's leadership so far, he ruled out the possibility of a leadership challenge before the next general election.

"I don't think there is any appetite in the party for another leadership election. It is dangerous for the parliamentary party to overturn so soon a decision which was made overwhelmingly by the membership of the party," he said.

Tebbit supported Duncan Smith's stance against gay adoption and said he would be prepared to fight the modernisers over reform of the controversial Section 28.

"He was right - although the issue on which the stand was taken was probably not the best one," the peer said.

"I don't think there's anything wrong with Section 28. I don't think there is any reason to believe it creates difficulties."

Lord Tebbit would like to see the Tories raise their profile on Europe.

"I think Iain was right to put it on one side with the formulation that the policy has been settled," he said.

"However, I don't think it is wise to entirely lose sight of a policy which has the support of 60 or 65 per cent of the electorate."

The former party chairman rejected the view that the Conservatives were seen as "the nasty party".

"If it was a nasty party and that was how it won the general elections of 1979, 1983, 1987 and even 1992, then it had better get itself nasty again if we want to win elections," said Lord Tebbit.

"I don't think it ever was the nasty party. It was the party that took some very hard decisions."