Mandelson agrees to meet rebel MPs as Royal Mail revolt swells

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The Business Secretary has promised a series of meetings as rebel leaders claimed the Government faced the biggest revolt since Gordon Brown took over.

A Commons motion against the plans was today signed by 66 Labour MPs, including former ministers Malcolm Wicks, Frank Dobson and Michael Meacher.Ex-deputy premier John Prescott is also in the rebel camp, while there are rumours some junior ministers and aides would resign if the proposals go ahead.

It follows Lord Mandelson's backing for a plan to sell a stake in the postal service, possibly to Dutch operators, in a major modernisation that would mean thousands of jobs being lost.

Labour MP Geraldine Smith, who put down the motion, said the Government faced defeat if it tried to go ahead with the overhaul. She added: "There are a lot of high-profile people who have told me they will put pressure on ministers behind the scenes."

She said the Dutch service fell short of UK standards, with some areas getting only two deliveries a week.

John Grogan, one of the signatories of the motion, said: "In February 2007 the Government agreed a £1.2 billion loan to modernise the sorting offices.

"Two years later only half of this has been spent - there is no need for private capital."