Spend! Spend! Spend! This seems set to be the theme for next week's pre-Budget report. Yet some ministers have started sloshing the cash around already, judging by the volte-face of James Purnell, work and pensions secretary, over the Post Office card account. He has axed a £1bn tender and allowed the Post Office to renew its five-year contract to run a card account for 4.5m people, with no competition. I am told this is causing some head-scratching in parts of Whitehall.

Everyone understands that Mr P. wanted to stop a rebellion by Labour backbenchers worried that another 3,000 post offices would close. Word is that he was also under the cosh of Lord Mandelson, the business secretary, who also did not want any rebels rocking the governmental boat. (Mind you, Lord M apparently wants to give up yachting in favour of black sequins and the light fandango - he has said he would like to take part in Strictly Come Dancing . Can't wait!)