Brown rules out U-turn on PPP

Gordon Brown has underlined his determination to part-privatise the Tube, crushing hopes that the Government might step back from introducing its maligned publicprivate partnership (PPP).

The Chancellor appeared to rule out recent hints of a last-minute compromise in a hardline message to business leaders last night.

In an address to CBI delegates at the start of their annual conference, he said: "We will continue our programme of public-private partnerships. Whether it be in the London Underground or in air traffic control, I am convinced that instead of the old sterile divide which pitted public against private, we will do best as a country when public and private sectors are able to work together to enhance investment in our transport and infrastructure."

The statement was in direct contrast to comments last month from government sources that a dilution of PPP was being planned.

It will be a crushing disappointment to opponents including unions, transport experts and Mayor Ken Livingstone who were hoping that, even at this late stage, key changes could be introduced over the role of private-sector maintenance contractors on the Tube.

Mr Brown is regarded as having personally driven through the project in the face of objections and may have to take the responsibility if the scheme proves as unsafe and inefficient as critics warn.

? The Health and Safety Executive is to conduct another investigation of the Tube before making a final decision on whether to approve PPP. Officials will concentrate on whether there has been any deterioration in safety standards since four separate operating divisions were introduced in readiness for the private sector taking over.