UNIONS are to be given a formal say in government policy on the public services in a deliberate move to avoid confrontation as the Prime Minister battles to save his hospital and education reforms.

Critics immediately complained that Tony Blair was ushering in a fresh era of beer and sandwiches at No 10 that would give unions special access.

Senior union figures will now serve on a special public services forum, chaired by a minister, that had been sought by the TUC. The Times understands that this is part of a wider attempt by Mr Blair to take his party, his MPs and the unions with him as he tries to regroup after the events of the summer, which aides concede have weakened him.

After talks at No 10 last night, the TUC General Secretary Brendan Barber said that Mr Blair had given a “positive response” to the proposal for a forum, a standing body through which union views “can be taken into account”. Douglas Alexander, the Cabinet Office Minister who is expected to chair the forum, and Mr Barber will now discuss how to bring it into effect.

Mr Barber said that the forum would be a mechanism for the Government to test ideas before decisions were made — the unions are furious they were not consulted on foundation hospitals.

But John Cridland, CBI deputy director-general, said that public service reform was too important to be discussed behind closed doors marked “unions only”. “Businesses should have equal opportunity to have a say — and we are just one interest group in this debate. What about the voluntary sector? What about consumers?”

Tim Yeo, the Shadow Industry Secretary, said that after a summer of industrial unrest and a million working days lost to strikes, it seemed that Mr Blair wanted to offer the unions even more influence. “This summer has seen the Prime Minister desperately short of friends. His party has been split from top to bottom on everything from Iraq and the euro to foundation hospitals and tuition fees. Now he has been reduced to beer and sandwiches with his union paymasters at the expense of real reform of our public services.”

Mr Blair is reported by advisers to be determined to press on with his reforms, but ready to make concessions and to listen more to his critics.

Close aides say he accepts that there will have to be amendments to his plan to allow universities to charge up to £3,000 in top-up fees if he is to get it through. These are likely to involve “rebranding” the scheme as graduate contributions and more generous bursaries for students from low-income families.

Mr Blair’s shift of tone will not prevent a succession of defeats at the TUC and Labour conferences over foundation hospitals, top-up fees and Iraq.

Such defeats cannot stop the reforms, but defeats in Parliament would. The Lords are likely to overturn the hospital reforms, and more than 170 Labour MPs have signed a motion opposing top-up fees in their present form. Such a revolt would block the legislation.

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