Labour Party ‘will go bankrupt if it loses union cash’

 
“Bloodletting”: Paul Kenny of the GMB said Labour needs union donations to fight elections
Bruce Adams/Daily Mail
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A major union boss today warned Labour not to cut their influence saying the party would go “bankrupt” without union money.

Paul Kenny of the GMB said the party could not fight a general election without donations from unions such as his and Len McCluskey’s Unite.

“The Labour Party, if we pulled out, would be bankrupt,” he told BBC radio. “If you took away the support of affiliated unions financially then it would be difficult to see how the Labour Party would fight a general election.”

His comment was seen as a rebuff to MPs who have hit out at the influence of Mr McCluskey, who helped to force the resignation of defeated Scottish Labour leader Jim Murphy.

Mr Kenny said: “If we are going to have bloodletting, it’s better to do it now rather than in two years.”

Acting party leader Harriet Harman devoted a speech in London this morning to reassuring the public that the unions would not be allowed to skew the contest for a new leader. She said the Electoral Reform Society will issue ballot papers so that unions cannot unfairly influence their members.

Tensions between Labour and the unions burst into the open over the weekend after Mr Murphy declared he was resigning as Scottish Labour leader and said Mr McCluskey was a “kiss of death” for the party. Mr McCluskey then claimed that the “arrogance” of Blairites such as Mr Murphy was to blame for the failure on May 7.

Shadow home secretary Yvette Cooper today suggested that Chuka Umunna’s decision to withdraw from the leadership race was down to inexperience.

Ms Cooper, who has put herself forward as a more seasoned figure to beat frontrunner Andy Burnham, said: “I completely respect Chuka’s decision. That’s why I think it’s important to have the experience and to be ready to do the job ... Because you can’t be put off by the difficult things that happen when this is such an important job.”

Mr Umunna dropped out of the contest on Friday, blaming the pressure of media scrutiny on his family.

Mr Burnham is said to have more than 100 MPs behind him already.

Ms Harman said candidates would be “stress tested” at hustings and debates. Shadow education secretary Tristram Hunt will decide this week whether to join the contest.

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