Gordon Brown, the Prime Minister, in fresh clash with unions

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Gordon Brown, the Prime Minister, faces a fresh clash with union leaders this week as he warns them that "tough choices" on public spending lie ahead.

The Prime Minister will use a speech on Tuesday at the TUC conference in Liverpool to try to "bind in" his union critics to a strategy of protecting front line services such as schools and hospitals while cutting spending elsewhere as Britain emerges from recession.

His efforts to bring them on board follow Friday's "chicken balti" summit at Chequers at which the Prime Minister attempted during a curry lunch to win over a group of union leaders whose criticisms have undermined his position as he plots an autumn fightback.

However, one of the guests at the Chequers gathering, Billy Hayes, leader of the UCW communication workers, issued a blunt warning that his union would "not accept" wage freezes, or cuts in services and jobs.

Mr Hayes also demanded a list of hard-left policy changes, including nationalising the construction and transport sectors, scrapping the planned replacement for the Trident missile system and abandoning plans for national identity cards.

Mr Brown will tell the TUC on Tuesday that Britain is on the "road to recovery" – the optimistic view of the future than he has put forward since the start of the recession.

However he will warn: "Things are still fragile, not automatic, and the recovery needs to be nurtured. People's livelihoods and savings are still hanging in the balance and so today I say to you: don't put the recovery at risk."

After accusing the Tories of promoting policies which "risk the nation's future" Mr Brown will deliver a "special message" to union delegates: "We have to make tough choices in public spending and we will need the support of the labour movement in protecting the front line first.

"Our opponents have one approach to reducing the deficit: slashing jobs and abandoning national pay bargaining. We have another: taking tough choices and empowering those who deliver services to innovate and secure greater value for money."

Mr Brown's repeated warning of "tough choices" suggests the government is about to announce specific plans to reduce spending which are tougher than previous proposals, possibly including a pay freeze.

Up to now, Mr Brown has been thought to be more reluctant to press ahead with big cutbacks than either Alistair Darling, the Chancellor, or Lord Mandelson, the Business Secretary.

By contrast Mr Hayes, whose UCW members have staged a series of damaging postal strikes over the summer, wrote in Tribune: "We will not accept that wage freezes, cuts or unemployment are essential to the recovery of the economy.

"Such policies are no more acceptable that the Tories' planned massive cuts to state and welfare spending."

Mr Hayes admitted: "To present a positive future under Labour is a very difficult task now."

Mr Brown's TUC speech represents the start of his autumn fightback after a summer in which his long silence over the release of the Lockerbie bomber and perceived failure to show leadership over the Afghanistan conflict have added to his political problems and seen Labour drifting well behind the Conservatives in the opinion polls.

After his TUC speech he will attend a European Union summit before flying to the US for a G20 gathering of world leaders. That is quickly followed by Labour's annual conference in Brighton where he will give his last keynote speech as Labour leader before the next general election.

His position, however, has been undermined by union leaders with Derek Simpson, boss of Unite, claiming that Mr Brown should stand aside if he is not prepared to take his party down the "Old Labour path" – although Mr Simpson later issued a "clarification" claiming the Prime Minister had his full support.

Ministers and Labour MPs do not expect a new challenge to Mr Brown's leadership around the time of Labour's conference – although some have warned he could face a fresh coup attempt in the winter if he has not managed to close significantly the poll gap between his party and the Tories.

[Carnoustie]

'However, one of the guests at the Chequers gathering, Billy Hayes, leader of the UCW communication workers...'

Is this an example of sloppy journalism, or are they guilty of 'living in the past', the accusation they often level at trade union leaders ?