U-turn on private managers in NHS

Tony Blair is to make major concessions to the unions in dropping plans to draft in private managers to run failing hospitals.

Next week Health Secretary Alan Milburn will publish figures revealing Britain's best and worst hospitals. Proposals to employ managers from the private sector to improve those with the worst performance record have been abandoned, however.

The move will be interpreted as a climbdown by Downing Street, which had been keen to see private sector involvement in the health service.

Two years ago, Mr Blair described how he bore "scars on my back" from trying to reform public services, but last week he signalled a softening of his stance when he made a speech offering support for the unions. Union leaders called his speech a "welcome change in tone".

Yet only 16 days ago, it was reported that private managers would be brought in to run the worst hospitals. The announcement triggered unease among unions and Labour backbenchers, who did not want to see back-door privatisation of the NHS.

Mr Milburn has now indicated privately that he believes there are excellent NHS managers who would be better placed to take over some major NHS trusts.