The Labour conference could be set to inflict damaging defeats on the party's leadership.

Trade unions have refused to declare their support for the government's position on Iraq, making it possible that Tony Blair could be defeated in a key vote on Thursday.

The prime minister's authority was also dented yesterday when delegates appeared on a show of hands to back a motion calling for a"publicly owned railway". The results of a formal vote will be announced today.

Also at the conference, the FT reports on a fringe meeting where trade secretary Patricia Hewitt was forced into "a tactical silence" as CBI chief Digby Jones and TUC general secretary Brendan Barber clashed over the EU's planned agency workers' directive.

Barber said the Morecambe Bay tragedy provided one reason to back the regulations, while Jones said that claim was an "absolute disgrace".

As ministers continued their struggle to focus on the government's domestic record, there were new pledges aimed at making Labour family friendly.

Chancellor Gordon Brown pledged more "high quality, affordable childcare for all and nursery education more suited to parents' needs".

And Hewitt also told the conference that up to two million parents could exercise their right to request more flexible working hours over the next five years.

Ed Balls, the former chief economic adviser to Gordon Brown, told a fringe meeting that Labour has not valued its achievements in power enough.

"Too often in the second term, rather than defining ourselves as a progressive force against the Conservative right wing and extreme opposition we spend too much time seeking to define ourselves against ourselves," he said.

Meanwhile, a Populus poll for the Times finds that Labour's successful management of the economy continues to draw support from voters.

Almost two thirds of the public believes it likely that Labour would deliver on economic management, while more than a third disagree.

The net balance of plus 24 points represents an eight point rise over the past year.

This compares with a net balance on the economy of plus 10 points for the Tories (down five points over the past year) and plus 13 points for the Liberal Democrats (up six points).