Health secretary Alan Milburn has sought to reassure Labour Party members and trade unions with a pledge that there will be no private sector "takeover" of the NHS.

"There is a role for the private sector. It is a relationship not a takeover," he said.

Demarcations between doctors and nurses and different elements of the NHS must be broken down if the health service is to improve, Milburn also told the Labour Party conference.

However, the CBI attacked a deal between the government and unions that included a promise to end two-tier workforces where public services are contracted out to the private sector.

Commenting on the deal, announced by local government minister Stephen Byers, CBI director general Digby Jones said: "The problem with this deal and the unions is they are approaching it from the point of safeguarding the status quo."