Brown starts to cave in

The Times is reporting that Brown will delay the part sell-off of Royal Mail and announce an Iraq war inquiry:

Gordon Brown is to slow down the part-sale of Royal Mail and announce an Iraq war inquiry within days as he tries to prevent dismal European election results strengthening the bid to oust him.

To appease Labour MPs further, Mr Brown is soon to give the go-ahead for the long-awaited Iraq war inquiry. Sources said he was “reflecting” on its timing and has asked the Cabinet Secretary Sir Gus O’Donnell to advise him on terms of reference, membership and timing. Mr Brown will say something this week.

Also, Lord Mandelson appears to be ready to go some way to placate dozens of Labour MPs who oppose his plans to part-privatise the Royal Mail. While continuing to insist the move is necessary to safeguard the business’s future, he is expected to concede that the time is not right commercially at present to go ahead with the sale to an outside interest. Labour MPs will ask for that to be accompanied with a promise to delay the legislation as well.

No doubt Mandy will blame the delay to the sell-off on the recession as was discussed here.