Labour and Unite at war: McCluskey accuses party HQ of a "stitch-up"

The Unite general secretary hits back after Labour announces the end of the "union join" scheme and suspends Unite candidate Karie Murphy from the party.

After weeks of criticism over Unite's alleged manipulation of the Falkirk selection process, culminating in the resignation of Tom Watson earlier today, the Labour machine has swung into action tonight. The party has announced the end of the "union join" scheme, which allowed trade unions to pay the first year's subscriptions of party members they recruited, and has suspended Karie Murphy, the Unite-backed candidate in Falkirk, and Stephen Deans, the chair of Falkirk CLP, from the party. Here's the full statement:

“We announced on 26th June that the General Secretary was going to review membership procedures.

“Ed Miliband is determined to uphold the integrity of Parliamentary selections and, therefore, as a result of that review we have several more measures to announce today.

In the light of the activities of Unite in Falkirk we will end the ‘union join’ scheme.

“Union join was established before Ed Miliband became Leader of the Labour Party with the aim of legitimately encouraging ordinary members of trade unions to become members of the Labour Party.

“However, due to the results of Unite in Falkirk it has become open to abuse but also open to attacks from our opponents that damage Labour. 

“In particular it was a mistake to have a scheme where others pay for people to join the party. Ed Miliband has today ended the scheme. Ordinary members of trade unions should join Labour and they will continue to be encouraged to do so, but that cannot be through schemes that can be tied to individual parliamentary selections or open to attack from our opponents.

“We have also suspended two members of the Labour Party from holding office or representing the Labour Party.

“They are: Karie Murphy and Stephen Deans who is the chair of Falkirk CLP.

“There have been allegations that they may have been involved in a breach of Labour Party rules. These relate to allegations concerning potential abuse of membership rules.

“The administrative suspension means that you cannot attend any party meetings and that they cannot be considered for selection as a candidate to represent the Labour Party at an election at any level.”

In a letter to Labour general secretary Iain McNicol this evening, Len McCluskey has responded by accusing the party HQ of a "stitch-up" and demanding an independent inquiry into the Falkirk affair. Here's his letter in full:

"Simply a ‘stitch-up’ [the report] designed to produce some evidence, however threadbare, to justify predetermined decisions taken in relation to Falkirk CLP. 

"Even on the basis of this flimsy report, it is clear that these decisions cannot be justified. There is no emergency which would justify imposing these undemocratic restrictions, since any real problems could easily be addressed before embarking on a parliamentary selection process. 

"The report has been used to smear Unite and its members. Even if the allegations of people being signed up to the party without their knowledge were true, this had nothing whatsoever to do with my union. 
  
"It is noteworthy that members of the shadow cabinet have been in the lead in initiating this attack upon Unite. Have they had sight of this report while I, the leader of the union put in the frame, has not had the courtesy of a copy? 

"The mishandling of this investigation has been a disgrace. I, however, am obliged to uphold the integrity of Unite, and I can no longer do so on the basis of going along with the activities of a Labour party administration in which I can place no trust. 

"I will therefore be publicly proposing that an independent inquiry be held into all circumstances relating to Falkirk CLP and the conduct of all parties involved, including Unite, the Labour party centrally (including the Compliance Unit) and in Scotland, the officers of the CLP itself, and all those who have sought or are seeking nomination as the Labour PPC. 
  
"Unite will cooperate fully with such an inquiry, and draw appropriate conclusions from any findings regarding our own behaviour. I trust that you will support such an inquiry, will direct all Labour party employees to cooperate with it and encourage other individuals to do likewise." 

Unite general secretary Len McCluskey. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The 5 things the Tories aren't telling you about their manifesto

Turns out the NHS is something you really have to pay for after all. 

When Theresa May launched the Conservative 2017 manifesto, she borrowed the most popular policies from across the political spectrum. Some anti-immigrant rhetoric? Some strong action on rip-off energy firms? The message is clear - you can have it all if you vote Tory.

But can you? The respected thinktank the Institute for Fiscal Studies has now been through the manifesto with a fine tooth comb, and it turns out there are some things the Tory manifesto just doesn't mention...

1. How budgeting works

They say: "a balanced budget by the middle of the next decade"

What they don't say: The Conservatives don't talk very much about new taxes or spending commitments in the manifesto. But the IFS argues that balancing the budget "would likely require more spending cuts or tax rises even beyond the end of the next parliament."

2. How this isn't the end of austerity

They say: "We will always be guided by what matters to the ordinary, working families of this nation."

What they don't say: The manifesto does not backtrack on existing planned cuts to working-age welfare benefits. According to the IFS, these cuts will "reduce the incomes of the lowest income working age households significantly – and by more than the cuts seen since 2010".

3. Why some policies don't make a difference

They say: "The Triple Lock has worked: it is now time to set pensions on an even course."

What they don't say: The argument behind scrapping the "triple lock" on pensions is that it provides an unneccessarily generous subsidy to pensioners (including superbly wealthy ones) at the expense of the taxpayer.

However, the IFS found that the Conservatives' proposed solution - a "double lock" which rises with earnings or inflation - will cost the taxpayer just as much over the coming Parliament. After all, Brexit has caused a drop in the value of sterling, which is now causing price inflation...

4. That healthcare can't be done cheap

They say: "The next Conservative government will give the NHS the resources it needs."

What they don't say: The £8bn more promised for the NHS over the next five years is a continuation of underinvestment in the NHS. The IFS says: "Conservative plans for NHS spending look very tight indeed and may well be undeliverable."

5. Cutting immigration costs us

They say: "We will therefore establish an immigration policy that allows us to reduce and control the number of people who come to Britain from the European Union, while still allowing us to attract the skilled workers our economy needs." 

What they don't say: The Office for Budget Responsibility has already calculated that lower immigration as a result of the Brexit vote could reduce tax revenues by £6bn a year in four years' time. The IFS calculates that getting net immigration down to the tens of thousands, as the Tories pledge, could double that loss.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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