The British government tonight hailed new figures showing unemployment at a record low despite mounting concern about the millions of people dropping out of the labour market.

The historic link between Britain's Labour party and the unions is for life not just an election campaign, the party’s chairman said tonight.

The replacement of John Reid as Britain's Labour Party chairman could strengthen a campaign to get the party to lift its membership ban on people in Northern Ireland, it was claimed today.

Former Northern Secretary John Reid was today appointed Leader of the House of Commons, Downing Street said.