Lord Mandelson on business, Ed Miliband and David Cameron

Speaking to Jon Snow, Lord Mandelson said that a lot of fear surrounding the Labour party and business has been “misplaced.”

He added: “They’re not facing a Labour party that doesn’t care about the deficit and isn’t going to exercise any fiscal responsibility. And they’re not facing a Labour party that’s going to tax them out of existence.”

Ed Miliband

Speaking about the election campaign, Mr Mandelson praised Labour leader Ed Miliband – saying that he has exceeded most people’s expectations – including his own.

He said: “I started feeling at the end of last week that something had shifted. That the plates had moved and Labour has captured a Zeitgeist in this campaign and the most striking feature of it is what’s happened to the two leaders.

“Miliband has moved forwards. He gained credibility. He’s exceeded most people’s expectations. I suppose in a sense mine as well.

Read more: the Channel 4 News Election 2015 Live Blog

“David Cameron on the other hand has moved backwards. He’s got to a position now when you wonder whether his heart’s really in this campaign anymore.

“Neither of the parties are so far headed for a clear, clean win. And the way I look at them is this, they seem to have a mirror image of each other’s problem.”