Tory leader's blunder producing panic (6)
I believe the answer is:
terror
'panic' is the definition.
(I've seen this before)
'tory leader's blunder' is the wordplay.
'tory leader' becomes 't' (I've seen this in other clues).
'blunder' becomes 'error' (I've seen this before).
't'+'error'='TERROR'
'producing' is the link.
(Other definitions for terror that I've seen before include "Troublesome kid" , "Paralysing fear" , "State of extreme fear" , "State of great fright" , "Out-of-control child" .)