Blair is trying to end Labour splits

Tony Blair has warned Labour backbenchers not to let their party "self destruct" through divisions.

His appeal to a private meeting of the Parliamentary Labour Party comes after the government's majority was slashed to its smallest to date, in a vote over foundation hospital plans.

Union leaders are threatening to give Tony Blair a "bumpy ride" over proposals to give top performing hospitals more financial freedoms after Tuesday's vote.

We don't want to see a two-tier health service and its clear from the closeness of today's vote that many MPs don't want it either Karen Jennings Unison

The prime minister told Labour MPs on Wednesday morning they must unite and end the infighting.

Labour had the prospect of winning an historic third term in power, he argued.

"There's a tremendous prize. Let's take that prize, not give it away to the Tories," Mr Blair continued, according to a party source.

As well as saying he expected discipline from MPs, Mr Blair said he also accepted ministers had to listen more to backbench concerns.

During the meeting, Glasgow MP Jimmy Hood was congratulated by Health Secretary John Reid and other leading Labour figures after he made an impassioned speech demanding an end to the divisions.

Mr Hood who has been off ill at home for three weeks said he had been watching what had been happening at Westminster and had been appalled by the infighting.

'Patients first'

The backbench rebellion on foundation hospitals saw the government's House of Commons majority cut from 164 to 35 - despite a raft of concessions.

Sixty-two Labour MPs, including two tellers, voted to wipe the hospital plans entirely from the Health and Social Care (Community Health and Standards Bill). As many backbenchers again stayed away from the vote.

Critics predicted the plans would create a "dog-eat-dog culture" inside the NHS.

Downing Street has brushed off the revolt, saying the important thing was that the bill had been voted through.

We are more united ideologically then at any time in 100 years of Labour Party history John Reid

And Dr Reid said that if both Left and Right were attacking the plans, they were "just about right".

There had been compromises made on the details but not on the essentials, he told BBC Radio 4's World At One.

"What we will not compromise is decentralising the decision making in this huge organisation in order to meet the needs of the patient and secondly the principle that the patient comes first," he said.

On splits more generally, Dr Reid argued: "We are more united ideologically then at any time in 100 years of Labour Party history."

'Principles at stake'

The hospital plans are likely to run into further difficulties in the Lords, where the Conservatives, Liberal Democrats and Labour rebels have signalled they will step up opposition.

Critics say foundation hospitals would result in a two-tier NHS, with funding channelled into the best hospitals while others struggle.

Sir Bill Morris, the general secretary of the T&G, attacked the lack of consultation undertaken by the government over such a controversial issue and predicted the bill would "ping pong" between the two Houses of Parliament.

Critics say foundation hospitals will result in a two-tier NHS

"The real issue is whether foundation hospitals will involve the principle of universal healthcare within the National Health Service," he told BBC Radio 4's Today programme.

"There are a lot of us that have grave doubts it will do any such thing.

"There was no consultation as far as this proposal was concerned, no green paper, no white paper and the Labour Party has not had a proper debate.

"Its appetite for further discussion has not been fulfilled and this issue is going to run and run and it will be a central feature at the Labour conference in the autumn."

Conference showdown?

Unison predicted it might force a debate on the reforms at the party's annual conference this autumn.

"We don't want to see a two-tier health service and its clear from the closeness of today's vote that many MPs don't want it either," said Unison's head of health, Karen Jennings.

"The government are in for a bumpy ride over the summer as opposition swells."

Shadow health secretary Liam Fox said the prime minister had only won the vote due to the backing of 40 Scottish Labour MPs who would not be affected by foundation hospitals.

"This is profoundly unfair and shows that Tony Blair will do anything to get his own way," he said.

When those charges were put to Mr Blair on Wednesday, he said it was "extraordinary" the Tories were saying Scottish and Welsh MPs should not have a vote on UK legislation.