The Labour leadership desperately tried to prevent the e-mails smear row reopening today with Lord Mandelson saying that the public now expected the Government to focus on their concerns rather than the preoccupations of the "Westminster village".

The Business Secretary said that it was no longer necessary to probe the actions of Damian McBride, the former No 10 spin doctor, because as far as the Government was concerned he "is no more".

Lord Mandelson said that Mr McBride should not have been - as reported - surprised by the furore he had caused because he had been paid from public funds and employed as a servant of the Government and public. That was why the Prime MInister had acted decisively and Mr McBride was no longer in the Government.

He added that it was important that the Government was not distracted from the task of tackling the recession, and that Mr Brown was “determined” to see Britain through the recession and “out the other side".

Mr Brown talked today to Ray Collins, Labour's general secretary, who has admitted being at a meeting that discussed the setting up of the Labour gossip website Red Rag.

But Mr Collins said: “I have had no knowledge whatsoever of any smears and found the stories and reports of the last week absolutely disgusting.

“I did attend a meeting at the Unite head office on December 1 to discuss online digital campaigning and how we could support and encourage left-of-centre websites and bloggers. I am absolutely of the view that legitimate and responsible debate and discussion on policy should be fostered on the web and this will continue."

He said after his conversation with Mr Brown: "We reiterated that we both feel there is absolutely no place for personal smears in politics.

“Neither I, nor the Prime Minister or anyone else in the Labour Party have any time for this type of activity.”

Meanwhile, ministers were denying that there was anything sinister in a regular meeting co-chaired by Ed Balls, the Schools Secretary, in No 10 and sometimes at the Commons. They claimed that it discussed communications and strategy in relation to Government policy and said it was ludicrous to suggest that it discussed smears. They also pointed out that No 10's top civil servant, Jeremy Heywood, regularly attended the meeting.

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