Victorian Liberal leader Michael O’Brien faces a backbench revolt over the flashpoint issue of privatisation, with one dissident MP accusing him of abandoning core Liberal beliefs.

The rebellion by two MPs, James Newbury and Beverley McArthur, comes after Mr O’Brien slammed the Andrews government over reports it was planning to sell off VicRoads' registration arm.

Opposition Leader Michael O'Brien. Credit:Luis Enrique Ascui

Mr Newbury said Mr O’Brien’s opposition to any proposed “flog-off” of the registration agency by Labor, with the leader concerned about rising costs to consumers and data privacy fears, was at odds with the traditional values of the party.

The Brighton MP invoked the legacy of Liberal hero Jeff Kennett, who as premier presided over a massive program of privatisation.