Tories neck and neck with Labour for first time in 18 months as economy finally shows signs of recovery Both main political parties on 36 per cent in latest poll Tories are up seven per cent and Labour remains unchanged UKIP are down five per cent on last months findings A Tory revival has seen them move level with Labour for the first time in almost 18 months, while support for UKIP has slipped back. A poll puts the two main parties neck and neck on 36 per cent, meaning the Conservatives are back on the share of the vote they achieved at the 2010 general election. The findings will cause alarm at Labour HQ, given that there are only tentative signs of the economy recovering and most pollsters predict the Tories will reap further benefits if there is a prolonged return to growth. Neck and neck: David Cameron and Ed Miliband's parties are now both on 36 per cent in the polls Labour have been ahead in the polls since March 2012, when George Osborne delivered a much-criticised Budget. But in recent months the Tory mood has been buoyed by policy announcements on an EU referendum, welfare reform and immigration. Home Secretary Theresa May also saw hate preacher Abu Qatada, whose case thwarted successive Labour ministers, deported to Jordan. The crucial factor in the Conservative surge, however, appears to be indications that the economy is finally turning. Official statistics also showed Britain did not in fact suffer a double dip recession under the Tories, meaning the only slump was on Labour's watch. Stewart Jackson, MP for Peterborough and a Tory right-winger who has often been critical of his party's leadership, suggested last night's poll would bring Labour leader Ed Miliband out in a "cold sweat." The ICM survey for the Guardian appears at odds with others, with one YouGov poll at the weekend giving Labour an 11 point lead. However the Independent's poll of polls recently found a fall in the size of Labour's lead from 13 points to six in the past four months. ICM's poll last month showed a strong Labour lead of seven points. But last night's survey showed an extraordinary turnaround, with the Conservatives on 36 per cent (up seven on last month), Labour 36 per cent (no change), Liberal Democrats 13 per cent (up one) and UKIP 7 per cent (down 5). The Tories appear to be benefiting from a steady erosion in support for the anti-EU upstart UKIP, which fell from 18 per cent in May just after its success in local elections to 12 per cent in June and is now in single figures. Tory strategists have long argued that support for UKIP is in part a protest vote exercised in relatively unimportant elections, such as those for councils and the European Parliament, which will not be replicated in a general election when voters are confronted with the choice between either a Tory-led or Labour-led government. However, Nigel Farage's party will hope for a resurgence of interest during the European Parliament elections next June, when it is aiming to come first in terms of national share of the vote. Looking upwards: Nigel Farage's UKIP is down five per cent on last months polls, but the leader has high hopes for next years European Parliament elections The Conservatives believe they have countered some of UKIP's appeal by backing legislation paving the way for a referendum on Britain's membership of the EU to take place by the end of 2017. Both Labour and the Lib Dems have refused to back a referendum. A Labour source said the ICM poll "feels outside the margin," adding: "Polls come and go but it's fair to point out in the last few days we have seen leads of 11, seven, 11, eight and eight points." Tory backbenchers demanding that David Cameron follows more hardline policies are engaged in "fantasy politics," former donor Lord Ashcroft has claimed. A poll commissioned by the Tory peer has found that policies proposed in an Alternative Queen's Speech are not universally popular. Tory right-wingers have proposed 42 private members" bills proposing everything from the banning of the burqa to the return of the death penalty. But the poll found that just 13 per cent of voters agree that the August Bank Holiday should be renamed Margaret Thatcher Day, another key proposal. Only one in four voters support allowing employees to opt out of the minimum wage, scrapping the Department of Energy & Climate Change and privatising the BBC. Lord Ashcroft said that to win in 2015 "we certainly need to deliver on immigration, crime and welfare reform, but it is at least as important for the Tories to be a competent and united party of government that can be trusted on the economy and public services."