Peter Mandelson on Monday sets out Labour’s battle lines for the next election, promising his party will outspend and outreform the Conservatives on public services. But legislation to shake up Royal Mail may be put on hold.

Lord Mandelson, business secretary, told the Financial Times “the worst is behind us” on the economy, claiming that a pre-election return to growth would help Labour meet its ambition “to maintain frontline spending and investment”.