Government "not for turning" on Royal Mail sale

Speaking on the BBC's Politics Show, Lord Mandelson said that he and he Cabinet "are not for turning" on a proposal to sell a 30 per cent stake of the company.

His comments come as rumours abound that the government is considering scrapping the controversial ideas, which has been criticised by a number of Labour MPs.

So far the plan has attracted an offer of a little under £2 billion, which is believed to have been made by private equity firm CVC Capital Partners. Dutch postal company TNT may also have an interest in acquiring the company, or at least its profit making parcels division.

Despite opposition to the sale Lord Mandelson said, "The Government is going to proceed with this legislation,"

"It is essential to do two things: one, keep the Royal Mail in the public sector and we will but secondly, make the changes that transform the business to enable us to sustain the better delivery service for the whole of the future."