Mark Irvine, head of Scottish local government for Unison, said Labour had "lost its moral centre" while trade unions had become little more than a handy milch cow. His protest was a welcome relief to the SNP, the party under most pressure.
Labour and Unison tried to play down the resignation. MP Douglas Alexander, a key campaign strategist, said Mr Irvine's decision had no bearing on the union or the party. Labour is under attack in Scotland for its reliance on Tory-inspired private finance initiatives to build schools and hospitals. Next week trade union leaders will call for an end to private funding. Mr Alexander said: "If people choose to make one of the issues of this election Labour's commitment to deliver 100 new school developments and eight new hospital developments, then that is territory on which we are happy to fight."
Labour's attempts to show how Scotland benefits from higher per capita spending than England were undermined by a report suggesting the gap is narrowing. Professor Brian Ashcroft, head of Strathclyde University's respected Fraser of Allander Institute said the pounds 4bn Labour earmarked for Scottish education, health and other services translates into an average real budget increase of 1.8 per cent a year up to 2001-02. Comparable real term growth in spending in the rest of the UK would be 4.4 per cent a year.