Labour minister considered Tory bid

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The former CBI boss is understood to have held talks with Tory leader David Cameron about a bid for the post shortly before joining Gordon Brown's "government for all the talents".

The news comes amid discontent among Labour MPs that such an outspoken cheerleader for business has been given a seat in the Lords and made a minister.

There are also complaints that Sir Digby has refused to join the party - although he has agreed to take the Labour whip in the upper house.

Sir Digby apparently told a Tory MP he was interested in running for Mayor around two months ago.

Mr Cameron's office then followed up the suggestion, and the two men held private discussions about the possibility of a bid.

However, the "trail then went cold", according to a party source. "It seems he got a better offer from Gordon Brown."

Mr Cameron reportedly mused on the situation at a private dinner for the Parliamentary Party on Wednesday.

"Digby Jones - he spoke to me a couple of months ago about standing as our candidate for Mayor," Mr Cameron disclosed. "He said he was interested and seemed keen, but then he went off and then the idea went away."

Sir Digby was unveiled as minister for business and industry last week, one of a handful of prominent outsiders recruited by the new Prime Minister.