Harman 'at odds with Darling' as she tries to make firms disclose gender pay gaps

Chancellor Alistair Darling is said to be strongly opposed to Labour deputy leader Harriet Harman's proposals, which were unveiled in June as part of the Equality Bill.

The plans would also make it legal for the first time for companies to promote female and black candidates over white men.

At loggerheads: Alistair Darling and Harriet Harman

Miss Harman - known as Harriet Harperson - wants the companies that sell goods and services to public bodies to carry out gender pay audits.

But Mr Darling says the demands will place too great a pressure on business, which are under massive strain at the moment from the credit crunch.

'Value for money is our key procurement objective,' a Treasury source told the Financial Times.

'We don't want to be putting regulatory burdens and increasing costs in all this, and we don't want to discourage small businesses.'

The Confederation of British Industry said it is 'very strongly against' compulsory pay audits.

'They are very expensive and very time consuming, and do very little to deal with the real causes of the pay gap,' said a spokesman.

Miss Harman has already been forced to back down on her equality plans following opposition from Cabinet colleagues.

She had originally wanted all private companies - not just the 30 per cent who provide services for the state - to carry out gender pay audits to reveal the salary gap between male and female staff.

Miss Harman and Mr Darling have taken turns at being the senior ministers in London while Gordon Brown has been on holiday. Government sources deny any rift between the two.