Blair and Byers at odds over PPP

The future of the Tube was once again mired in confusion today after Tony Blair and Transport Secretary Stephen Byers sent out differing signals about Government plans for the network.

The Prime Minister insisted controversial part-privatisation is the best way forward for the Underground during questioning on the country's rail chaos in a weekend interview.

He offered no possibility of the move being abandoned on safety or value-for-money grounds - something Mr Byers has been at pains to do for the last few months.

By contrast, the beleaguered Transport Secretary used an interview today to underline that he is "very clear" the PPP would not go ahead if it failed value-for-money tests.

Mr Byers's remarks are the latest in a long line of comments which have suggested the Government is preparing for a climbdown within weeks which would see control of all or part of the Tube being handed over to Ken Livingstone's Transport for London authority.

They came as Mr Byers also appeared to cast doubt on one of the founding principles of New Labour - close partnership with the private sector. He criticised Mr Blair's beloved "Third Way" as "flaky around the edges".