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Union election warning to Brown Union talks 'constructive' - PM
(20 minutes later)
Gordon Brown has been warned by a leading union leader that Labour is headed for defeat at the next election unless it does more for working people. Gordon Brown has said protecting jobs will be at the top of his agenda over the coming months after "constructive" talks with union leaders.
Derek Simpson, the head of Unite, said many senior Labour figures seemed resigned to defeat and compared Mr Brown to a "rabbit in the headlights". Getting the economy out of recession was at the heart of a "wide-ranging" discussion with union officials at Mr Brown's Chequers residence, No 10 said.
He told the Guardian that Labour must be supporting industry and the unemployed, not cutting spending. Before the meeting, one union leader said Labour would lose the election unless it did more for working people.
His comments came ahead of a meeting between Mr Brown and union leaders. Unions are concerned that spending cuts will result in widespread redundancies.
Support for workers 'Tough choices'
The prime minister is meeting 15 trade union leaders at his country residence Chequers to discuss concerns over spending cuts ahead of next week's TUC annual congress in Liverpool. The prime minister met 15 trade union leaders for three hours ahead of next week's TUC annual congress in Liverpool.
The meeting, at which union leaders will seek to put forward ideas for Labour's election manifesto, was expected to last three hours. Downing Street stressed the talks were not "political" despite recent disquiet in the union movement over the extent of spending cuts required to rebalance the nation's finances.
Downing Street has stressed that the talks are not "political" and would centre on discussions about the government's latest economic policy document.
The prime minister's official spokesman said: "The purpose is to discuss the government's continuing strategy to bring Britain out of recession, including the policies set out in Building Britain's Future."
The government says it wants to halve the budget deficit - expected to be £175bn this year - over the next four years but unions say this must not involve mass redundancies.The government says it wants to halve the budget deficit - expected to be £175bn this year - over the next four years but unions say this must not involve mass redundancies.
Labour has got to be more clear that it is on the side of working people, rather than give the impression it backs big business Derek Simpson, Unite They agreed that pulling the plug on the economy at a time of recession would put the recovery at risk No 10 statement
Mr Simpson said the prime minister needed to act decisively on issues such as jobs, pensions and housing if Labour was not to be beaten at the next election, which must be held by next June. Despite recent signs of a tentative economic recovery, there are fears that the number of people out of work could top the three million mark by the end of the year.
"Labour has got to be more clear that it is on the side of working people, rather than give the impression it backs big business," he told the newspaper. In a statement, No 10 said the meeting centred on efforts to return the economy to growth as soon as possible.
But he claimed insecurity surrounding Gordon Brown's position was hurting Labour as the prime minister too often "behaved like a rabbit in the headlights, suffering a paralysis, for fear his colleagues are going to whip the knives out and stab him". "It was a constructive and wide-ranging discussion," it said.
In a separate interview with The Mirror, Mr Simpson said New Labour was "dead" and that if Gordon Brown was not prepared to lead a return to traditional Labour values he should "stand aside". "They agreed that pulling the plug on the economy at a time of recession would put the recovery at risk. It was also agreed that jobs will be top of the agenda in the coming months."
But, clarifying his remarks later, Mr Simpson insisted Mr Brown had his full support as leader while urging him to embrace more "progressive" policies. "While the prime minister made it clear that there will be tough choices on public spending in future years, he reiterated his strong commitment to the role of public services and manufacturing in Britain's future growth."
Friday's meeting, attended by the TUC's Brendan Barber, Unison's Dave Prentis and GMB's Paul Kenney, comes at a time of increasingly fraught relations between Labour and the unions. Before the meeting, Unite leader Derek Simpson said Labour must support industry and the unemployed not cut spending.
The prime minister needed to act decisively on issues such as jobs, pensions and housing if Labour was not to be beaten at the next election, he told the Guardian.
But he claimed insecurity surrounding Mr Brown's position was hurting Labour as the prime minister too often "behaved like a rabbit in the headlights, suffering a paralysis, for fear his colleagues are going to whip the knives out and stab him".
Tensions rising
Friday's meeting, also attended by the TUC's Brendan Barber, Unison's Dave Prentis and GMB's Paul Kenney, came at a time of increasingly fraught relations between Labour and the unions.
Unison has threatened not to fund Labour candidates at the next election who support policies which threaten public sector jobs such as further private sector involvement in the NHS.Unison has threatened not to fund Labour candidates at the next election who support policies which threaten public sector jobs such as further private sector involvement in the NHS.
'No love-in'
A Downing Street insider said the meeting would be "no love-in" but emphasised that ministers were protecting jobs during the recession through apprenticeships and subsidised work places.
Ahead of the meeting, a report by the Taxpayers' Alliance and the Institute of Directors said the government could save £50bn by scrapping programmes and freezing public sector pay for a year.Ahead of the meeting, a report by the Taxpayers' Alliance and the Institute of Directors said the government could save £50bn by scrapping programmes and freezing public sector pay for a year.
It called for the abolition of Sure Start, set up to help children in deprived areas, and the Education Maintenance Allowance, designed to encourage teenagers to stay in college or training.
The Institute of Directors said businesses were having to make savings and the public sector must do the same.
"Any cut in spending naturally has the potential for some pain, but our list shows that large sums can be saved without hurting vital services," said its director general Miles Templeman.
The level of government spending is set to be a major issue in the build-up to the next election.The level of government spending is set to be a major issue in the build-up to the next election.
Labour says the Tories would reduce spending on essential frontline services if they gained power, choking the economic recovery and increasing unemployment.Labour says the Tories would reduce spending on essential frontline services if they gained power, choking the economic recovery and increasing unemployment.
The Conservatives, meanwhile, say public spending must be reduced immediately to tackle the excessive level of debt.The Conservatives, meanwhile, say public spending must be reduced immediately to tackle the excessive level of debt.