Europe minister Peter Hain has said the government is to blame for delivering railways that are "the worst in Europe". He told the Spectator magazine that Labour had "started transport investment far too late...We should have been more radical earlier".

While Hain said "I don't know anyone in the government who does not agree with this", the prime minister rejected similar criticisms made by Lib Dem leader Charles Kennedy at prime minister's question time. Tony Blair was also rejected calls from Conservative leader Iain Duncan Smith to sack transport secretary Stephen Byers and "get a grip" on the railways.

The prime minister called for the dispute between the RMT and South West Trains to be settled by arbitration, though the union said it would "not be looking" to this as a means to defuse the dispute. SWT also reiterated that it was not prepared to renegotiate its 7.6 per cent pay offer and ruled out any prospect of arbitration over the disciplining of union activists accused of safety offences.

The national strategic railway plan, which will be published next week, will focus on investment in London and the south east in a bid to encourage train use and cut overcrowding. The region accounts for seven out of ten train journeys.

More strike misery for the government and public came with the news that around 150,000 postal workers are to be balloted over strike action in a pay dispute with Consignia.

A reporter from the Sun, dressed as a snail and riding a skateboard, proved how bad travelling in London now is by beating a car and a bus to get to Stephen Byers's office in a race.