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Number 10 denies Royal Mail talks | Number 10 denies Royal Mail talks |
(10 minutes later) | |
Downing Street has rejected claims that it is considering an alternative to the part privatisation of Royal Mail, in order to avert a Labour revolt. | Downing Street has rejected claims that it is considering an alternative to the part privatisation of Royal Mail, in order to avert a Labour revolt. |
The Guardian reported aides to the PM were talking to Labour rebels about plans to turn Royal Mail into a not-for-profit company, like Network Rail. | The Guardian reported aides to the PM were talking to Labour rebels about plans to turn Royal Mail into a not-for-profit company, like Network Rail. |
But a spokesman for Number 10 said the idea was not considered "workable". | But a spokesman for Number 10 said the idea was not considered "workable". |
Dozens of MPs have indicated that they will vote against the plan to sell off a large minority stake in Royal Mail. | Dozens of MPs have indicated that they will vote against the plan to sell off a large minority stake in Royal Mail. |
The Guardian report follows a weekend of speculation about Gordon Brown's authority, with senior Labour figures, including Harriet Harman, being forced to rule themselves out of any leadership challenge. | The Guardian report follows a weekend of speculation about Gordon Brown's authority, with senior Labour figures, including Harriet Harman, being forced to rule themselves out of any leadership challenge. |
'Step back' | 'Step back' |
The Guardian reported on Tuesday that Mr Brown's aides had met with leaders of the potential Labour rebellion to consider a proposal by left-wing campaign group Compass. | The Guardian reported on Tuesday that Mr Brown's aides had met with leaders of the potential Labour rebellion to consider a proposal by left-wing campaign group Compass. |
The group has suggested the Royal Mail should be remodelled as a not-for-profit enterprise similar to Network Rail and the BBC Trust. | The group has suggested the Royal Mail should be remodelled as a not-for-profit enterprise similar to Network Rail and the BBC Trust. |
A Compass pamphlet published on Tuesday calls on all sides of the Labour party to "step back from the brink" and give support to the idea of keeping Royal Mail in the public sector. | A Compass pamphlet published on Tuesday calls on all sides of the Labour party to "step back from the brink" and give support to the idea of keeping Royal Mail in the public sector. |
The government has said its door is open to those with ideas on the future of the Royal Mail Downing Street spokesman | The government has said its door is open to those with ideas on the future of the Royal Mail Downing Street spokesman |
The pamphlet's author Neal Lawson concedes that Royal Mail does need "a range of governance, investment and industrial relations reforms", but argues that "privatisation is the wrong answer". | The pamphlet's author Neal Lawson concedes that Royal Mail does need "a range of governance, investment and industrial relations reforms", but argues that "privatisation is the wrong answer". |
If the prime minister agreed to turn it into a not-for-profit company, Mr Lawson argues, that "would heal wounds and suspicions in the party". | If the prime minister agreed to turn it into a not-for-profit company, Mr Lawson argues, that "would heal wounds and suspicions in the party". |
"The alternatives of defeat at the hands of Labour backbenchers, or privatisation, but only with the help of [the] Tory frontbench, are both too awful to contemplate," he adds. | "The alternatives of defeat at the hands of Labour backbenchers, or privatisation, but only with the help of [the] Tory frontbench, are both too awful to contemplate," he adds. |
Responding to the Guardian's claims, a Downing Street spokesman said: "The government has said its door is open to those with ideas on the future of the Royal Mail and Neal Lawson has taken advantage of the opportunity to present the proposal he is publishing this week to government officials. | Responding to the Guardian's claims, a Downing Street spokesman said: "The government has said its door is open to those with ideas on the future of the Royal Mail and Neal Lawson has taken advantage of the opportunity to present the proposal he is publishing this week to government officials. |
"We do not believe his alternative is workable and it is not under consideration." | "We do not believe his alternative is workable and it is not under consideration." |
Downing Street has always maintained that the part-privatisation plan, although unpopular with many Labour Mps, is the only way to safeguard the service. | Downing Street has always maintained that the part-privatisation plan, although unpopular with many Labour Mps, is the only way to safeguard the service. |
Earlier this year the business secretary, Lord Mandelson, said that although he was sorry about the "political pain" caused by the plan, he would not "walk away" from it. | Earlier this year the business secretary, Lord Mandelson, said that although he was sorry about the "political pain" caused by the plan, he would not "walk away" from it. |
Another defeat | Another defeat |
But BBC political correspondent Laura Kuenssberg said there was "no sign of any let up" in pressure from Labour's Mps to scrap part-privatisation. | But BBC political correspondent Laura Kuenssberg said there was "no sign of any let up" in pressure from Labour's Mps to scrap part-privatisation. |
So far 148 Labour MPs have signed a motion opposing Downing Street's plan. | |
Another parliamentary defeat for the prime minister would be seen as further damaging to his authority, following last week's backbench rebellion over the rights of former Gurkha soldiers, and the rejection of his plan to reform Mp expenses. | |
Labour's deputy leader Harriet Harman has already been forced to deny a report she would fight for the party leadership. | Labour's deputy leader Harriet Harman has already been forced to deny a report she would fight for the party leadership. |
And Communities Secretary Hazel Blears wrote a newspaper article widely interpreted as criticising Mr Brown's communication skills - particularly his decision to upload a video to YouTube. | And Communities Secretary Hazel Blears wrote a newspaper article widely interpreted as criticising Mr Brown's communication skills - particularly his decision to upload a video to YouTube. |
Later she issued a statement: "Any suggestion that I intended what I wrote as criticism of him [Mr Brown] or his leadership is completely wrong. I fully support the collective decisions we take." | Later she issued a statement: "Any suggestion that I intended what I wrote as criticism of him [Mr Brown] or his leadership is completely wrong. I fully support the collective decisions we take." |