Unions vow to step up health Bill battle

Union leaders today vowed to step up the fight over foundation hospitals after Tony Blair's controversial scheme was dented by a new rebellion by Labour MPs.

Health union Unison vowed to carry on the fight against the flagship NHS proposal - - and is heading for a showdown with ministers at Labour's annual conference in Bournemouth.

Unions are pushing for a pilot project in a single region rather than creating dozens of newstyle trusts nationwide as the Government wants. Ministers will resist union proposals - but could suffer a damaging defeat at the party conference.

The Unison warning came after the Government narrowly carried its plans to give best-performing trusts freedom from day-to-day Whitehall control. But its majority was cut from 164 to 35, its lowest margin of victory on a major issue since the last election.

Some 62 Labour MPs voted against the Government with scores abstaining. The measure only got through because 40 Scottish MPs voted with the Government despite the Bill not applying north of the border.

Shadow health secretary Liam Fox said: "This is profoundly unfair and shows that Tony Blair will do anything to get his own way."

But Health Secretary John Reid said the choice MPs faced was between "reforming the NHS or breaking it up".

The Health and Social Care Bill now heads off to the House of Lords - where it can expect a further mauling - before returning to the Commons.