Prime Minister Tony Blair and Chancellor Gordon Brown are expected to participate in talks with the TUC on the "major crisis" in the manufacturing sector.

TUC leaders are expected to tell government leaders, including DTI Secretary Stephen Byers, that they must fund a large scale project to stem the loss of jobs from the manufacturing sector caused by the strength of sterling.

Political and industrial analysts are interpreting the pressure from trade unionists as an increasing attempt to influence government policy in the run up to the next general election.

The TUC has warned, "The view that manufacturing no longer matters - that services can act both as the motor for faster economic growth - shows a breathtaking ignorance of economic realities and the trends of the past 40 years."

Further details can be found in the Times newspaper.