Kemi Badenoch has sparked a backlash after saying Tory councillors would be free to form coalitions with Reform UK.
The leader - who has ruled out a national agreement - gave the green light for her party members to get together with Nigel Farage's politicians at local level. Labour says the comment show voters could be "opening the door to more Tory chaos".
Mrs Badenoch told Breakfast: "I've seen Conservatives go into coalition with Labour, with , with Independents. You don't get to have a rerun of an election at local level, so what I'm telling local leaders across the country (is) they have to do what is right for the people in their local area."
The Tory leader said Conservative councillors would need to "stick to Conservative principles" such as "sound money" and "not excessive government intervention".
Following her comments, Ellie Reeves MP, chair of the , said: "Now it's crystal clear: if you vote Reform or Conservative, you're opening the door to more of the Tory chaos that held our country back over the past 14 years.
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" and her Conservative Party left our NHS at breaking point and wants to make patients pay for healthcare when they're sick. Just imagine what they'd do together."
And Lib Dem deputy leader Daisy Cooper said: “Badenoch may have ruled out at a pact with Farage but the reality is the Conservatives and Reform have merged in all but name under her leadership.
"You couldn't put a cigarette paper between Badenoch and Farage when it comes to their policies. It’s clear the Conservatives have totally abandoned the centre ground.
"It's little wonder that former Conservative voters appalled by the party’s continuing lurch to the extremes are switching to the Liberal Democrats in their droves."
Mrs Badenoch acknowledged that the local elections would be "challenging" following the party's "historic defeat" at last year's .
She said: "We can't win everything all the time, but I want people to know that those local Conservatives are working hard for every vote." The Tory leader has previously said she has no intention of merging with Reform, pointing out that Mr Farage has vowed to "desroy" her party.
But there are signs of a split within her frontbench. On Thursday Shadow Justice Secretary Robert Jenrick refused to rule out a deal ahead of the next general election.
He said: “Reform themselves are saying they don’t want to. Reform has said repeatedly they have no intention of doing this. Kemi has said she has no intention."
But he declined to explicitly rule out such an agreement. A spokesperson said: “The cat is out the bag: the Tories won’t rule out doing a dodgy backroom deal with Reform.
“The Conservatives wrecked public services and Nigel Farage plans to charge patients thousands for routine treatments. Just imagine what they’d do together."
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