Mandelson: Tory claims are bad joke

The Business Secretary said shadow chancellor George Osborne "still has a bit to learn" about political positioning.

It comes after a speech in which Mr Osborne claimed Labour's policies would lead to cuts in frontline public services.

He had described Gordon Brown as a "roadblock to reform" and called for sweeping changes to public services to prevent deep cuts as a result of ever-tighter budgets.

But Lord Mandelson said Mr Osborne was not standing on "credible ground" and repeated an accusation that the Tories were taking part in "political cross-dressing".

Writing in the Guardian while he is deputising for Mr Brown, Lord Mandelson said: "From the benches of the European parliament, where the Tories sit alongside a motley collection of far rightists, nationalists and homophobes, their claim to carry the torch of progressive politics looks like a bad joke."

He went on: "To be a progressive is to believe that we can make a better society and improve the conditions of individual lives by acting together - sometimes through an active and accountable government that is responsive to local needs, sometimes by challenging prejudice and helping the disadvantaged, and sometimes by unlocking individual potential through education and opportunity.

"It is to believe in the necessity of and value of social justice. Osborne doesn't believe this and couldn't speak about it with conviction."

Referring to the shadow chancellor as "Osborne" throughout the article, the Business Secretary made one exception in a damning final remark.

He wrote: "The first lesson of political positioning is that you have to have credible ground to stand on. George obviously still has a bit to learn."