Unite boss warns Miliband funding for Labour is conditional

[dutchman]

One of Labour’s biggest union backers has issued a warning to the party, urging Ed Miliband to drop his support for austerity.



Len McCluskey, the Unite general secretary, told his members that he was willing to cut the organisation’s political funding for the Labour party, if it continues to back coalition cuts.

Mr McCluskey said that continued Unite backing for the party would depend on “a Labour party that our members want to support, because they believe it can and will make a difference in their lives.

“Not a party that is a pinkish shadow of the present coalition, that gives the City a veto over economic decisions and embraces the austerity agenda squeezing the life out of the country.”

The speech was Mr McCluskey’s most significant intervention since allegations emerged that his union was trying to influence the Labour candidate selection process for a by-election in Falkirk to promote the union’s preferred choice.

The Unite boss was scathing about Ed Miliband’s decision to refer the matter to police. He called the decision an “utter, utter disgrace”, adding: “Assertion was passed off as fact, allegation became reality.”

But he welcomed the Labour leader’s move to end the process whereby union members become automatically affiliated with the Labour party unless they opt out.

He said: “We all honour our movement’s traditions, but this is one tradition overdue for a change. Unite is doing things differently in one area of our work after another, including politics.”

However, Conservative party aides pointed out that Mr Miliband’s move, which was intended to dilute the power of big unions such as Unite, will end up giving Mr McCluskey and other union bosses more influence.

Labour is likely to become more reliant on large donations from unions if individual affiliations dry up; a recent poll by Lord Ashcroft, the Tory former treasurer, suggested only 12 per cent of Unite members would choose to join the party.

Mr McCluskey made reference to the increasing importance of his union’s political fund under the arrangements, saying the fund could have “various uses” other than donations to Labour.

He added: “We will not be just handing it over to the Labour party as has previously happened.”

Mr McCluskey’s backing for Mr Miliband’s union reforms means the Labour leader is likely to be able to pass the measures when they are voted on at a special conference next spring.

But Mr Miliband might find it harder to resist demands to change his plans to match the Conservatives on welfare and current departmental spending, which he launched last month to try to build up Labour’s reputation for fiscal credibility.