Labour 'delays Short discipline'

Ms Short has been a thorn in the government's side.

Labour's ruling National Executive Committee has avoided a confrontation with ex-Cabinet minister Clare Short ahead of next week's party conference.

Ms Short could face expulsion from Labour after she said she was "ashamed" of Tony Blair's government and would campaign for a hung Parliament.

But NEC members agreed to refer the matter to the Parliamentary Committee of senior MPs before taking action.

Tony Blair has said next week's will be his last conference as Labour leader.

'Serious' words

Ms Short's future was among a number of issues, including party funding, under discussion by Labour's National Executive Committee on Wednesday.

In a statement, the NEC said it had considered a report by Chief Whip Jacqui Smith on the ex-minister and had now asked Ms Smith to raise the matter at the parliamentary committee before reporting back to the NEC.

I have reached a stage where I am profoundly ashamed of the government Clare Short

Ms Short made the inflammatory comments last week as she announced her decision to stand down as Labour MP for Birmingham Ladywood.

She said then: "I have reached a stage where I am profoundly ashamed of the government," adding that she would campaign for a hung Parliament, where no party has overall control.

Ms Smith, who is in charge of party discipline, said the comments were so serious they would be referred to Labour's chairman and general secretary for consideration.

Officials had initially said Ms Short's case was being "fast tracked", but it appears the NEC decided to pull back from a potentially damaging showdown ahead of Mr Blair's final conference as leader.

Ms Short's office says she is not making any comment in response to the outcome of the NEC meeting.

Election blueprint?

Meanwhile, Mr Blair has been briefing the Cabinet on plans for working groups to examine Labour policy for the next decade.

He wants findings from groups on economic competitiveness, public services, security and migration, and foreign policy to shape next year's Comprehensive Spending Review and provide a blueprint for a fourth Labour general election victory.

Mr Blair was joined round the table by Mr Brown, widely tipped as his successor, and other possible rivals to the leadership.

Home Secretary John Reid has said he has "no personal ambition" to be prime minister, although many believe those comments still left it open for him to make a bid if he felt that doing so would be for the good of the country.

Education Secretary Alan Johnson has expressed an interest in standing as deputy leader and could also throw his hat in the contest for the top job.

Looking to the future

Ministers will also have heard the themes of Mr Blair's farewell speech to the annual conference in Manchester, which is set to take up the challenges of the next decade.

He was expected to say Labour can only achieve a fourth election victory by appealing to those who want to "get on" in a party of aspiration and opportunity.

Officials say this year's party conference slogan will be "Labour: The Future for Britain".

Earlier this month, the prime minister was forced to apologise for Labour's conduct after a wave of resignations by junior ministers in protest at the lack of clarity over a departure date and backbiting by senior colleagues.

A period of calm followed, but was reignited by Europe Minister Geoff Hoon who at the weekend urged Mr Blair to resign before next May's elections to the Scottish Parliament, Welsh Assembly and local councils.