Alchemy Partners, bidding to buy Rover from BMW, this week involved Stephen Byers in a row over Government action to aid redundant Midland car workers.

Senior partner Jon Moulton called for the removal of Alex Stephenson as head of a jobs taskforce because his brother Nick is part of a rival consortium. Mr Byers gave him the task of aiding thousands of people expected to be made redundant at the Birmingham Longbridge plant.

Former Rover chief executive John Towers, mounting a rival bid, heads a group which includes Mr Stephenson's brother Nick.

Alchemy's Jon Moulton faxed Mr Byers, saying: “Alex has informed us you were personally aware of this.”