The Government has ruled out the part-privatisation of Royal Mail in the current economic climate, the Business Secretary has told the House of Lords.
Back in February Lord Mandelson said: "A partnership will provide the springboard on which Royal Mail can generate new revenue streams - by developing its parcels business for example - drawing on the resources and size of both partners."
But today he told peers: "Market conditions have made it impossible to conclude the process to identify a partner for the Royal Mail on terms we can be confident would secure value for the taxpayer.
"There is no prospect in current circumstances of achieving the objectives of the Postal Services Bill. When market conditions change we will return to the issue."
The Government had faced the prospect of a rebellion by Labour MPs who want Royal Mail to remain entirely within public hands, but this week the Business Secretary made it clear the Postal Services Bill, which paves the way for privatisation, would not be voted on until after the next election.
It is the latest in a series of Government announcements that is designed to deflect attention away from difficult issues ahead of a general election.
Ministers have delayed the next review of public spending until after the poll, plans for compulsory ID cards for British citizens have been dropped entirely and the Iraq inquiry, which Gordon Brown had planned to be held behind closed doors, will now be conducted in public.
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