Opponents of President George W. Bush's plans to overhaul Social Security declared a small victory on Monday when Waddell & Reed, the Kansas-based financial services firm, withdrew support from a business-backed group pushing the reform.

The decision by Waddell & Reed to leave the Alliance for Worker Retirement Security (AWRS) comes amid mounting evidence of the uphill fight Mr Bush faces in persuading Congress and the public to back his plan. It also shows the tough line organised labour is taking to financial services firms including some that manage union pension funds that labour leaders say stand to benefit from the reforms.