Labour hit as GMB slashes funding from £1.2m to £150,000

The UK's third largest trade union expresses "considerable regret" at Miliband's planned reforms and warns of "further reductions in spending".

No one in Labour has ever disputed that Ed Miliband's plan to reform trade union funding so that members are required to opt-in to joining the party, rather than being automatically affiliated by general secretaries, will cost it millions. But few anticipated that it would do so even before the changes have been introduced.

The GMB, the UK's third largest union, announced this morning that it plans to reduce its affiliation fees to Labour from £1.2m to £150,000, depriving the party of 3% of its 2012 income. The union, which backed Miliband's leadership bid, currently affiliates 420,000 of its members to the party but will reduce this number to 50,000 from January. In a statement it said: 

The GMB central executive council (CEC) has voted to reduce its current levels of affiliation to the Labour party from 420,000 to 50,000 from 2014.

This will reduce the union's basic affiliation fee to Labour party by £1.1m per year. It is expected that there will further reductions in spending on Labour party campaigns and initiatives.

GMB CEC expressed considerable regret about the apparent lack of understanding the proposal mooted by Ed Miliband will have on the collective nature of trade union engagement with the Labour Party.

A further source of considerable regret to the CEC is that the party that had been formed to represent the interest of working people in this country intends to end collective engagement of trade unions in the party they helped to form.

The CEC also decided to scale down by one third the level of its national political fund.

It's likely that Labour would have suffered a similar loss had the GMB waited until the reforms were introduced. The union will now affiliate 12% of its members to the party, in line with the private estimate made by Labour and union officials of how many will opt-in (and the same as the number that Lord Ashcroft's Unite poll suggested would join). But the GMB's decision to slash its funding in advance, rather than seek to recruit members to the party, is a damaging vote of no confidence in Miliband's reforms and Labour's policy stance. 

The statement also suggests that the union intends to cut back on separate donations from its political fund, promising "further reductions in spending on Labour party campaigns and initiatives." 

The move does, however, make it harder for the Tories to claim that the unions are seeking to "buy influence" in Labour, although I'd expect them to point out that it increases the influence of Unite. 

GMB general secretary Paul Kenny. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The private renting sector enables racist landlords like Fergus Wilson

A Kent landlord tried to ban "coloured people" from his properties. 

Fergus Wilson, a landlord in Kent, has made headlines after The Sun published his email to a letting agent which included the line: "No coloured people because of the curry smell at the end of the tenancy."

When confronted, the 70-year-old property owner only responded with the claim "we're getting overloaded with coloured people". The letting agents said they would not carry out his orders, which were illegal. 

The combination of blatant racism, a tired stereotype and the outdated language may make Wilson seem suspiciously like a Time Landlord who has somehow slipped in from 1974. But unfortunately he is more modern than he seems.

Back in 2013, a BBC undercover investigation found 10 letting agent firms willing to discriminate against black tenants at the landlord's request. One manager was filmed saying: "99% of my landlords don't want Afro-Caribbeans."

Under the Equality Act 2010, this is illegal. But the conditions of the private renting sector allow discrimination to flourish like mould on a damp wall. 

First, discrimination is common in flat shares. While housemates or live-in landlords cannot turn away a prospective tenant because of their race, they can express preferences of gender and ethnicity. There can be logical reasons for this - but it also provides useful cover for bigots. When one flat hunter in London protested about being asked "where do your parents come from?", the landlord claimed he just wanted to know whether she was Christian.

Second, the private rental sector is about as transparent as a landlord's tax arrangements. A friend of mine, a young professional Indian immigrant, enthusiastically replied to house share ads in the hope of meeting people from other cultures. After a month of responding to three or four room ads a day, he'd had just six responses. He ended up sharing with other Indian immigrants.

My friend suspected he'd been discriminated against, but he had no way of proving it. There is no centrally held data on who flatshares with who (the closest proxy is SpareRoom, but its data is limited to room ads). 

Third, the current private renting trends suggest discrimination will increase, rather than decrease. Landlords hiked rents by 2.1 per cent in the 12 months to February 2017, according to the Office for National Statistics, an indication of high demand. SpareRoom has recorded as many as 22 flat hunters chasing a single room. In this frenzy, it only becomes harder for prospective tenants to question the assertion "it's already taken". 

Alongside this demand, the government has introduced legislation which requires landlords to check that tenants can legitimately stay in the UK. A report this year by the Joint Council for the Welfare of Immigrants found that half of landlords were less likely to rent to foreign nationals as a result of the scheme. This also provides handy cover for the BTL bigot - when a black British tenant without a passport asked about a room, 58 per cent of landlords ignored the request or turned it down

Of course, plenty of landlords are open-minded, unbiased and unlikely to make a tabloid headline anytime soon. They most likely outnumber the Fergus Wilsons of this world. But without any way of monitoring discrimination in the private rental sector, it's impossible to know for sure. 

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