Business and the unions were yesterday united in their criticism of the government's approach to industry.

Digby Jones, the director general of the CBI, told the BBC that business distrust of the government was at its highest level since Labour came to power in 1997.

Jones said his message to Tony Blair was: "Be careful. There won't be much more to come if you don't feed the cow as well as milk it."

The CBI chief's remarks coincided with the decision by the rail workers' union, the RMT, to withdraw most of its financial support for the Labour Party in protest at the government's refusal to renationalise the railways.