Mandelson wants to privatise post

Peter Mandelson has revealed that he is in favour of partially privatising Royal Mail. The new Business Secretary said in an interview yesterday that he had wanted Royal Mail "to be progressively private, even if if initially part of the company stayed in the Government's hands" when he was first in government, under Tony Blair.

Mandelson said that he would have implemented the plan if he had not been forced to resign as Trade and Industry Secretary. "Frankly, 10 years on, I was surprised this was still an unresolved issue."

The disclosure is likely to set Mandelson on course for a battle with many of his Labour colleagues who oppose private solutions. The Government's review of Royal Mail is due in the next few weeks.