Equality laws seen as too costly to businesses could be stopped.

An article in The Times suggests maternity and equality laws may be postponed to help businesses battle the recession. This comes after these laws were only announced by the Queen two months ago.

The law affecting maternity was going to enhance maternity leave, while the equality law would have rewarded companies with strong equality records with government contracts. Both create additional costs for businesses and look certain to be scrapped by Lord Mandelson.

The news has divided cabinet ministers, particularly those who called for increased powers to improve equality in workplaces in the first place, such as Harriet Harman. There are reports this is deepening an ideological divide in the Labour Party.