Chancellor Gordon Brown yesterday threatened to open up a rift within the Labour movement after he pledged to continue with public sector reforms if he succeeds Tony Blair as leader.

Trade unions responded with dismay to Mr Brown's assertion that there would be "no turning back" from the New Labour agenda followed under Blair.

Leaders of the major unions, meeting at Labour's annual conference in Brighton, denounced the reform agenda as privatisation by the back door.

Several senior Cabinet ministers have this weekend indicated that they expect Mr Brown to inherit the leadership in a co-ordinated media offensive reportedly authorised by 10 Downing Street.

Work and Pensions Secretary David Blunkett, once viewed as a potential Blairite contender to take on Mr Brown, said there was no "obvious alternative candidate" to the Chancellor.

Mr Blair wants this week's conference to focus on the programme of health and education reforms which he has pledged to drive through in his third term.

But the annual gathering threatens to be overshadowed by rows over the timing of his departure and Labour's direction in the post-Blair era.

The Labour Left has seen a Brown premiership as their best hope of reversing the movement towards private-sector involvement in the provision of public services under Blair.

However, Mr Brown yesterday made clear he is hoping for a smooth transfer of power with no dramatic shifts in policy.

He said: "The programme of reform will continue when Tony steps down because it is the right programme for Britain. Indeed it is the only programme for Britain if we are going to compete in the era of globalisation."

The leadership is braced for clashes with the unions this week over calls to increase powers to take industrial action and motions on equal pay and pensions.

Efforts by anti-war activists to engineer a debate on Iraq on the floor of the conference were stymied when organisers rejected a motion honouring the leading critic of the war, Robin Cook.

Delegates were instead shown a video tribute to the former foreign secretary, former prime minister Lord Callaghan and the ex-Cabinet minister Mo Mowlam, all of whom died during the summer.

Monday, September 26, 2005