Darling fights equality test

Friday, 8 August 2008 1:29 PM

Alistair Darling is said to be in a bitter war with equality minister Harriet Harman over equality requirements for companies with government contracts.

Ms Harman wants all private companies selling goods or services to reveal their gender and race equality record and then to have that record potentially form the basis of whether or not they get the contract.

But the Treasury is opposing the plans, saying they move in the opposite direction to the one the government wants to travel - decreased regulation.

Under Ms Harman's plan, companies would reveal their gender pay gap and the number of ethnic minority and disabled people they employ. Government decision on contracts would then take this information into account.

There are concerns, however, the proposals could contravene European laws banning disproportionate state requirements in tenders.

Theresa May, shadow equality minister, said: "Gordon Brown only has to go on holiday for two weeks and the Cabinet infighting starts again.

"By sending out a mixed message on public procurement, Harman and Darling have proved yet again that the government is incapable of making a decision."

Ms Harman's insistence on the plans reflects a continued irritation at the difficulty of imposing equality requirements on the private sector.

Through various equality bills have secured real advances in the public sector, Ms Harman's attempts to put private sector obligations in this year's bill had to be sacrificed in the face of stiff industry resistance.

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• domestic policy
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• equality
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• labour
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• party politics