John Pesutto tipped to be next Liberal Party leader

John Pesutto has claimed victory in the ultra-marginal seat of Hawthorn, cementing his chances of taking over leadership of the Liberals.

John Pesutto has claimed victory in the ultra marginal seat of Hawthorn, cementing his comeback after his shock defeat in 2018 and putting him on track to take over leadership of the Victorian Liberal Party.

Mr Pesutto is understood to have broad support from across the partyroom.

The former Liberal MP was first elected to government in 2014 and served as shadow attorney general before losing the blue riband seat.

He appeared to have lost the seat again at this election with teal independent Melissa Lowe taking an early lead after polls closed on Saturday.

However he gained ground on pre-poll votes.

John Pesutto has emerged as the early favourite to take over leadership of the Victorian Liberal Party. Picture: David Crosling

Labor candidate John Kennedy, who beat Mr Pesutto for the seat in 2018, phoned him on Wednesday to congratulate him on the win.

“I rang John Pesutto earlier and congratulated him on a well earned victory,” Mr Kennedy said.

“I commend him on the work he has put into winning back the seat.

“I wish John, his wife Betty, and future electorate office staff all the best for the next four years.”

Mr Pesutto’s spent months on a grassroots campaign to fend off the challenge from Ms Lowe.

With 80 per cent of the vote counted, Mr Pesutto led Ms Lowe 51.3 to 40.7 on a two-party preferred basis.

The ABC’s Antony Green declared the seat a Liberal win late on Wednesday.

Mr Pesutto will now challenge for the leadership of the Liberal Party.

He is expected to face off with either Brad Battin or Richard Riordan.

Only Mr Battin and Polwarth MP Richard Riordan have confirmed they will contest the leadership.

Party sources said Mr Battin remained the most likely to face off with Mr Pesutto in a likely challenge as early as next week.

Ryan Smith has endorsed Brad Battin for Liberal Party leadership. Andrew Henshaw

Mr Riordan is understood to also have a sizeable amount of support from more the more conservative branch of the party.

A plan that would have seen upper house MP Matt Bach thrust into the top job received a mixed support on Tuesday.

“If there is any current member of the Liberal Party Room that has the potential to unite a disparate and warring membership and provide unifying leadership, it’s him,” one source said.

“While John Pesutto may be presented by some as the moderate salve to the recent electoral burn the Party has received, he is heavy with political baggage from the Baillieu era that many right-of-centre members of the Party will find it hard to move past.

“Surely after such a disappointing result, there is no better time to invest in the future.

“Now is not the time to look to the past for leadership. Whatever we’ve been doing clearly isn’t working.”

Sources said one of the very clear messages from the election was that the Liberal Party needed to do a better job connecting to regional communities.

“One of the most important ways to ensure that regional voices are heard is to have a regional MP in the leadership, and Richard Riordan is by far the most well credentialed and respected regional MP,” a senior Liberal said.

“Aside from enjoying broad support from the conservative side of the Party, he is one of few MPs with deep experience running a business.

“A joint ticket with Bach and Riordan would put us back in the game and position us to begin the major internal reforms that are so clearly necessary.”

Member for Western Victoria Region Bev McArthur is understood to be considering throwing her hat in the ring to lead the party in the upper house.

Several Liberal sources said both Georgie Crozier and Mr Bach would also be considered for that job, in the event current leader David Davis was challenged.

The party is expected to meet next Wednesday.

Smith withdraws from race

Warrandyte MP Ryan Smith was one of four main contenders to replace Matthew Guy as Opposition Leader.

But in a statement on Wednesday he said he was pulling out of the contest.

“I have taken the decision today to withdraw my candidacy for the leadership of the Liberal parliamentary team,” he said.

Warrandyte MP Ryan Smith was one of four main contenders to replace Matthew Guy. Picture: Wayne Taylor

“With consideration, and after discussions with Brad Battin, I have concluded that our vision for the party and our approach to the next four years are closely aligned.

“Dividing support for that positive agenda is counterproductive. “

“Brad will make an outstanding leader — positive, energetic and a person of integrity.

“He also represents one of Melbourne’s growth areas, a demographic in which our party’s future lies.”

Mr Smith and Mr Battin are friends and their decision to both challenge for the leadership was expected to split votes among factional allies.

Both men have pledged to build on the party’s efforts achieving swings against Labor in the outer suburbs.

Some longstanding Labor seats in the north and west saw double digit swings which have turned them into marginal electorates.

But they were on large buffers which allowed the government to hold on against this trend.