The Royal Mail protest picks up pace

The Labour protest over the Government’s plan to allow foreign investors to take up a stake in Royal Mail has just been ramped up a notch by the resignation of Jim McGovern as PPS to Pat McFadden, Minister of State for Employment Relations and Postal Affairs.  All signs now are that this could turn into one of the biggest rebellions that Gordon Brown’s faced during his premiership – and certainly something that could punctuate the general stream of positive coverage that’s been flowing his way recently.

Given the quantity of foreign cash that’s propping up the British economy – albeit mostly in sectors that don’t have quite the same national-sentimental kudos as Royal Mail – one thing to look out for is whether this kind of thing dissuades foreign investment more generally.  Another is how Peter Mandelson deals with the situation; the first major test of his resurrected ministerial career.