Speaking to the BBC yesterday (31 May), Mandelson said he and the cabinet "are not for turning" and that the government is set to proceed with its privatisation legislation, despite reports that the government is set to abandon the plans because bids do not reach the proposed targets.

The statement of intent comes as CVC Capital Partners has been touted as leading the pack of highest bidders for Royal Mail with an offer just shy of £2bn for a 30% stake, according to The Guardian.

The offer is one of only two, the other from Dutch business TNT, with Deutsche Post curtailing its interest earlier in the year.

Also see:
Royal Mail posts positive full year figures
Royal Mail pension deficit 'could top £12bn'