The press is divided in its reporting of Tony Blair's meeting with union leaders last night.

The Times reports that Blair is heading for a clash with unions after a "tense" three hour meeting with key union leaders.

The prime minister said he would not back down on his plans to give the private sector a role in delivering key public services, leading some to suggest that a clash at the party conference was inevitable, says the paper. The Sun also reports that Blair defied union demands.

The Guardian reports that the meeting failed to heal the divisions over reform plans.

The FT says union leaders left the meeting in a calmer mood than when they went in following assurances there was no secret plan for wide scale privatisations.

The Telegraph reports that in a climb-down by Blair the role of the private sector has been "watered down" to appease the unions, while the Independent says unions failed to secure any concessions.

Opposition to any privatisation also came in the Commons from Labour backbenchers. During prime minister's question time, Martin Salter warned against any repetition of the "barmy" privatisations of the Conservatives.