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Number 10 steps into Mandelson post row
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02 March 2009
No10 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 today about complaints that the peer had too much influence, Mr 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 yesterday 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 Ms 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 Mr Brown's support.
John Grogan, a leading rebel on the plans, said that Cabinet ministers and "people within No 10" were beginning to see the dangers of splitting the party.
Government sources have suggested Lord Mandelson wants to get his plans through Parliament before the summer recess. But Mr Grogan said the Royal Mail Bill would face serious Labour opposition at its second reading.
A recent poll showed that 65 per cent of voters opposed the plans.
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