Deluded Jeremy Hunt yesterday insisted "everything is going well" in a speech to Tory members and donors.
The Chancellor attempted to boost morale amongst supporters as the economy flatlines and the party languishes in the polls.
In a speech at the luxurious Dorchester Hotel in London, Mr Hunt told them to block out all the “negativity”.
He failed to mention the party's catastrophic local election results a fortnight ago that saw them lose over 1,000 council seats.
A Labour source said: "If this is what the Tories think doing well looks like, I’d love to see their idea of a disaster. It’s hard to keep a straight face while they’re clearly living on another planet."
Mr Hunt told the audience Britain is “in an incredibly powerful position at the moment”.
The UK economy grew by just 0.1% in the first three months of this year and remains smaller than it was before the Covid pandemic. In March, it contracted by 0.3%.
The Bank of England last week announced it was raising interest rates for the 12th time in a row as it tries to tackle inflation.
Interest rates were hiked to 4.5% from 4.25% - the highest in almost 15 years.
Inflation has not dropped as quickly as predicted and remains close to its highest level for 40 years. The measure of price increases was 10.1% in the year to March.
The Conservatives' Spring Lunch is held to raise money for campaigning in marginal seats across the country.
A silent auction was held with lots including foreign getaways to other supporters' holidays homes.
One attendee said: “Jeremy Hunt said the polls are swinging in the Tories’ direction.
“He counterpointed the negativity... it is worth challenging the negativity. It's worth people looking deeper and realising not everything is quite what it seems."
Another guest said: “All of us here in Britain don't think as much of our country as everyone else around the world. Everyone around the world thinks it’s marvellous and we think it’s awful.”
A party spokesman said: “The Conservative Party is funded by membership, fundraising, and donations.
"Donations to the Conservative Party are properly and transparently declared to the Electoral Commission, openly published by them, and comply fully with the law. Fundraising is a legitimate part of the democratic process."
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