Business secretary Lord Mandelson said the media coverage of the expenses scandal created “the perception of wrongdoing” about his claims for his constituency home – lodged after he said he would be standing down as an MP.
He reportedly went on to sell the property for a £136,000 profit but denied he had claimed to improve the house.
Mandelson confirmed this week that he will push ahead with the privatisation of Royal Mail despite fears that this will pitch Gordon Brown into yet another fight with bankbench MPs opposed to the plan.
The labour centre-left Compass group is pushing proposals for a softer privatisation, despite it being rejected by the government.
More importantly, the plan also brings Mandelson into conflict with the CWU postal workers’ union.
Across the country there are ballots for strike action against management attacks on postal workers.
These strikes, such as the one planned across London, could become the basis for stopping New Labour’s plans.