Robinson portrays divided government

Peter Mandelson is described as a divisive influence

By BBC News Online's political correspondent Nick Assinder

Like the Bernie Ecclestone row before it, the scandal over Peter Mandelson's home loan just won't go away.

The man who gave him the cash, former paymaster general Geoffrey Robinson, has contradicted Mr Mandelson's account of the loan which led to both ministers resigning.

According to Mr Robinson, it was Mr Mandelson who asked him for the £373,000 loan over dinner in May 1996, and he was happy to help out a friend and colleague.

Mr Mandelson previously told the Commons sleaze watchdog that it was Mr Robinson who made all the running.

Clearly someone is not telling the truth and, at the end of the day and without corroborating evidence, that is what this row now comes down to - do you believe Mr Robinson's version of events or Mr Mandelson's?

MPs and those members of the public who care will make up their own minds.

But it seems highly unlikely that, without that extra evidence or a new inquiry, the latest claims will cause anything like the crisis for Tony Blair which the original revelation did.

Internal warfare

However, there are still issues surrounding the row which could cause severe damage to the government.

First there are the side claims by Mr Robinson that he directly funded Tony Blair's personal office before the election.

That has always been denied by the government, and Downing Street is now insisting that only the trustees of the blind trust, which administered such donations, would know the answer.

Secondly the book adds to the persistent drip, drip of evidence of deep rifts, even hatreds, at the centre of the government.

The initial revelation about the home loan was said to be part of the internal warfare between the Blair camp, led by Mr Mandelson, and the Gordon Brown camp, which included Mr Robinson.

And in his memoirs, Mr Robinson loses no time in spelling out the malign effect he believes Peter Mandelson has in government.

He describes him as "the bad influence who whips up conflict" between the prime minister and his chancellor.

Dangerous issue

He also claims Mr Mandelson pursues his own agenda and persistently re-opens policy rows after they have been settled in cabinet.

In the next instalment from his book he is going to claim Mr Mandelson did that in particular over the single European currency.

Europe is probably the single most dangerous issue currently facing the government - it helped bring down Margaret Thatcher after all - and, once again, there are rival camps.

Mr Mandelson is said to be pushing for the government to harden its commitment to joining the euro, while Mr Brown is urging caution.

Downing Street may dismiss the latest book and claim only a few people in the "Westminster village" care about it.

And it may well be true that it will gain limited circulation. But its portrait of a government riven with personality clashes, policy rifts and back stabbing will have a far wider audience.