John Prescott is heading for a rough ride from backbenchers after delaying his long-awaited transport White Paper and amid signs he may privatise the air traffic control network.

The deputy prime minister has confirmed that the transport proposals have been delayed until after Chancellor Gordon Brown has completed his comprehensive spending review - which is looking for cuts from most Whitehall departments.

And rumours that he is ready to bring private cash into the operation of air traffic control have raised fears with some MPs that there is some tough horse trading going on between the two men about where cash can be saved to boost the transport system.

Speaking in an interview with the Independent newspaper, Mr Prescott admitted his proposals will not now be published until the end of July, a month later than expected.

He also signalled that the proposals to tackle car pollution may have been watered down.

Spending review

"We have now decided that the White Paper will be produced after the statement on the comprehensive spending review, because it is then that the allocation of resources and issues are determined."

Bill "not anti-car"

He also said the proposals would not be as "anti-car" as had been previously believed, although he did suggest he would introduce charging for congestion and parking in out of town supermarkets.

He is also likely to introduce a motorists' charter to improve standards of road maintenance and cut down the number of roadworks.

The suggestion has already angered environmentalists and some backbench MPs pressing for radical changes in the transport system.

It is also believed Mr Prescott wants a mixture of private and public cash to run the National Air Traffic Service in a deal with the Chancellor to free up cash for transport improvements.

Considering options

A spokesman for the Department of Transport said ministers were still considering "all the options" possible for the service.

Downing Street described the suggestions as "speculation" and said a whole range of plans were under consideration in the spending review in all departments.

But any move to privatise it would spark anger amongst some backbench MPs who believe it is a return to Thatcherite-style policies.

The issue blew up during the election campaign and casued fury among some MPs who claimed it would be a privatisation too far.

It is clear that the negotiations around the chancellor's spending review are coming to a head with departments jostling for position.

Mr Brown has insisted he is not prepared to increase spending without savings from other areas and will be sticking to the previous government's spending targets for the lifetime of the entire parliament.

Ministers are under orders not to suggest any extra spending that cannot be met from reductions in other areas of their budgets.