Royal Mail sell-off plans in doubt

Business secretary Lord Mandelson has raised significant doubts over the government's plans for a sell-off of the Royal Mail, after saying it was being "jostled" by other government business. This puts in doubt the move being realised before the next election, although Mandelson said he still hoped it would go ahead, saying "I want to retain the slot, but... I have to concede that the original linking of the legislative passage and the bidding process for the strategic partner has been decoupled."

The history of the government's plans to put part of the Royal Mail into the private sector has been chequered, with critics of the idea in the Commons lining up against it. More than 140 Labour backbenchers have signed up to a motion critical of the move and as a result of this intense scrutiny rumours have swirled that it could be put on the backburner.

More importantly perhaps, Lord Mandelson alluded to the depressed state of the financial markets, meaning that the government would not receive top dollar for the sale of any stake at the moment. His comments indicate that there is increasingly room for a climbdown, which will come as welcome relief for trade unions and government critics alike.

The change comes as Lord Mandelson works on a new set of reforms designed to increase the government’s popularity, and as Gordon Brown prepares to launch his “Building Britain’s Future” campaign later today.