The British Prime Minister, Mr Tony Blair, insisted in a New Year message yesterday that his government would stay on course despite a tougher economic outlook in 1999 and a series of political setbacks.
"Of course, from time to time, the government, like any, will suffer knocks; and the media will revel in them. But they come and go," Mr Blair said.
The message was issued by Mr Blair's office as the Prime Minister relaxed with his family at a beach resort in the Seychelles. It came a week after the row which led to the resignation of the Trade Secretary, Mr Peter Mandelson, Mr Blair's closest cabinet colleague.
Mr Blair made no direct reference to the departure of Mr Mandelson, a leading fellow-moderniser in his government, which has been in office now for 20 months.
Mr Mandelson's exit, after failing to declare a large housing loan from a wealthy fellow-minister, has reopened fault lines in Mr Blair's team and revived speculation about a tilt back to more traditionalist policies.
The Deputy Prime Minister, Mr John Prescott, was quoted yesterday as saying there was still a role for old-style government intervention in industry.
His interview with the Independent came close to a dismissal of the free-market policies championed by Mr Mandelson.
The interview stressed the close partnership between Mr Prescott and the Chancellor of the Exchequer, Mr Gordon Brown, frequently portrayed as political rivals in Mr Blair's cabinet.
Mr Prescott told the Independent, in a phrase likely to raise eyebrows in Mr Blair's office: "We have decided that public expenditure is there to uphold the economy in the traditional Keynesian way."
Mr Blair has insisted that the "New Labour" policies which he and Mr Mandelson devised will not be watered down.