Brown rules out Royal Mail U-turn

Gordon Brown ruled out a U-turn on the proposed part-privatisation of the Royal Mail – despite growing fears that a Labour split could damage his authority.

Gordon Brown ruled out a U-turn on the proposed part-privatisation of the Royal Mail – despite growing fears that a Labour split could damage his authority.

The Cabinet backed the principle that a chunk of the postal service would be offered to the private sector – although, crucially, it offered talks to rebels on the size of the share.

It set the scene for a bruising Commons vote before the summer recess where up to 150 Labour backbenchers could oppose the flagship reform.

Brown is currently relying on Conservative votes to safeguard the Bill, putting his authority in grave danger of a Tory ambush on the day.

Brown’s decision to stamp on rumours of a major retreat came after fresh signs of Cabinet feuding. Lord Mandelson, the architect of the Royal Mail reforms, was said to be furious that the chief whip, Nick Brown, had been encouraging rebel backbenchers to come up with alternative policies.

Lord Mandelson was also reported to have been warning that he would become disenchanted if the policy was dumped due to rebels.