Don't make historic blunder, Blair tells Labour NHS rebels

Tony Blair warned Labour MPs yesterday that they would be making a "mistake of historic proportions" if they voted against government plans for NHS foundation hospitals.

However, within minutes of his warning an influential Commons committee published a report outlining the clear dangers posed by the move to free some hospitals from Whitehall control.

The Health Select Committee concluded that the first wave of NHS trusts with foundation status could attract the best staff at the expense of under-performing hospitals. "The potential for inequity posed by Foundation Trusts therefore needs to be addressed," its report stated. David Hinchliffe, the chairman of the committee, also warned that Britain's worst hospitals could be locked into a spiral of decline as their rivals attracted more money.

With 130 Labour backbenchers already expressing concern at the plans in a Commons motion, the potential for an upset was bolstered when the Tories made it clear that they would not vote for the second reading of the Health and Social Care Bill.

But Mr Blair was defiant yesterday, claiming that reform was central to his plans to transform public services alongside record investment. "For the Labour Party, this is of absolutely crucial importance to our success as a government and a party. For those who believe in public services, reform is fundamental to their future. To turn our backs on it, would be a collective mistake of historic proportions," he said.

Both sides of the debate seized on the select committee's report, with critics pointing out its repeated warnings about the need for stronger safeguards for hospitals that performed badly.