preferred

Anger erupted today at the government's decision to declare parliament the preferred source of new legislation. Charities and private sector companies have launched a class action to overturn the decision.

This decision means failing or underperforming politicians would be allowed to keep their seat to allow them to improve, rather than allowing charities and private companies a chance to take over provision of that service.

The statement from the minister surprised cabinet colleagues and industry insiders alike, as it appeared to renege on a Labour 2005 manifesto pledge that the voluntary and community sector "should be considered on equal terms" as elected politicians, and contradicted the efforts of other members of the cabinet who had in recent months been calling for an increased role for charities and non-state actors in the provision of legislative services.

The unexpected development in Labour selection policy was seen as a sop to the unions – increasingly important in bankrolling the general election campaign. But government advisers insist the minister's embrace of the "preferred provider" phrase was more a measure to rally the disillusioned backbenchers and that any shift in public policy was inadvertent.