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Peter Mandelson said: ‘nobody is saying that Universities should have reduced funding… but the party is asking if the tuition fees system is working in the most optimum way’.

‘There are issues which Labour is right to look at but it is also a very complex area of policy which doesn’t offer neat alternatives’.

He also said claims he "sounded" out Alan Johnson to replace Ed Miliband are "complete rubbish".

‘Miliband is a principled & determined individual...he is pro-business & pro-social justice’