The Government remained set for a clash with Labour MPs and unions tonight after rejecting a new plan to help boost the finances of the Royal Mail without resorting to a controversial sell off of part of the business.

Asked whether the Prime Minister was worried about the prospect of several thousand job losses in Royal Mail, the PMS replied that the Royal Mail had set out their position on that story. It was his understanding that the Royal Mail had said they had no plans for 16,000 job cuts. In terms of staffing at Royal Mail, it was an operational matter for the company and the PMS would leave it to them to ...

The prospect of a large scale Labour revolt over the UK Government's plan for a part-privatisation of the Royal Mail grew last night after an aide to the minister responsible for the Post Office quit, saying the proposal "beggars belief".

The next big threat to the Prime Minister if he survives the current leadership crisis will be the plan to partprivatise Royal Mail.

Mark Milner Industrial Editor Lord Mandelson, the business secretary, today said he hoped the government's plan to recruit a strategic partner for Royal Mail would bring a "gale force of fresh air" to the state-owned company's management culture. With the government already prepared to take on responsibility for Royal Mail's ballooning pension fund deficit, Mandelson said it was too...

Gordon Brown faces growing pressure from mutinous Labour backbenchers to ditch or delay moves to partly privatise Royal Mail. Party whips have warned the Prime Minister, who is already dealing with the "smeargate" scandal, that the plans have stretched the loyalty of his MPs to breaking point. Lord Mandelson, the Business Secretary, appears to have made little headway in winning them over. A Commo...

The government pressed ahead yesterday with its controversial plans to part-privatise the Royal Mail in the face of opposition from Labour MPs and unions, pledging to use money from the sell-off to modernise the business.

Asked if there had been any discussion of Royal Mail in Cabinet, the PMS said only in passing in relation to upcoming parliamentary business. Asked whether the Government was still committed to the part-privatisation of Royal Mail, the PMS said that the Government’s position on the Royal Mail had not changed from the position that was set out in December. original source.

Gordon Brown is facing his biggest rebellion since becoming Prime Minister with around 125 Labour MPs signing a motion criticising his plan to sell of a stake of Royal Mail.

The Royal Mail made a profit of £321 million last year with 07-08 earnings at £162 million. The Royal Mail has doubled its profits when the number of letters being posted has fallen. Surely no more illustration is required to convey that this public company is more than viable. All the fear mongering emanating from this tired government is revealed for what it is. If Brown continues to...