Gordon Brown was yesterday praised by business for resisting "the worst" union demands on policy, but urged to stand his ground in the run-up to this autumn's politically charged party conference season.

Business reacted with undisguised relief to the measures for Labour's next manifesto hammered out at the party's National Policy Forum over the weekend. Reports yesterday claimed the prime minister had "caved in" to the unions, which represent the sole funding lifeline for his cash-strapped party. But employers pointed out that the reality was somewhat different. Facing a list of 130 union demands, Mr Brown rejected the vast majority outright and gave little ground on the remainder.