Townsend was pro-European, advocating Britain's membership of the European Exchange Rate Mechanism. He criticised Thatcher for her Euroscepticism, which led to him supporting Michael Heseltine in the 1990 Tory leadership election. As a result, in January 1991 the executive of his constituency association proposed to make him stand for reselection, with Townsend's critics saying that he was a maverick who failed to consult his local party on key issues. The motion fell when put to the full association the next month.