Govt steps into Royal Mail row

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Downing Street yesterday denied that Lord Mandelson had effectively become “deputy prime minister” as the row over his Royal Mail plans grew.

No 10 tried to appease Labour MPs amid warnings that Gordon Brown should “rein in” his business secretary’s influence over government.

Labour backbenchers, growing numbers of whom oppose the part-privatisation plan for the post service, called on the prime minister to clip Lord Mandelson’s wings. When asked yesterday about complaints that the peer had too much influence, Brown’s official spokesman said: “We don’t have a deputy prime minister. Lord Mandelson is secretary of state for business.”

Lord Mandelson infuriated backbenchers on Sunday by suggesting critics were using “scare tactics” to stymie his proposals to bring in private-sector help for the state-run postal service.

Fresh evidence of Cabinet disquiet over the plans emerged when deputy Labour leader Harriet Harman confirmed there had been “robust discussion” among senior ministers.

Labour rebels were boosted by Harman’s reassurances that the government will look closely at their “concerns”.

But many were smarting from Lord Mandelson’s latest Sunday newspaper interview in which he underlined his wish to push through the plans.

Former minister Peter Kilfoyle told the Evening Standard: “It’s time for Gordon Brown and his colleagues to break the spell Peter seems to have over the higher reaches of the government.”

Geraldine Smith, whose Commons motion opposing the plan has been signed by 145 MPs, added: “The only person who’s been using scare tactics and dirty tricks is Peter Mandelson.”

Several MPs believe Lord Mandelson’s unashamedly Blairite policies are weakening Brown’s support. Government sources have suggested Lord Mandelson wants to get his plans through Parliament before the summer recess. But Grogan said the Royal Mail Bill would face serious Labour opposition at its second reading.