Unite General Secretary Sharon Graham has long been one of this government’s fiercest critics. In September 2025, Graham accused the Labour Party of abandoning its roots and warned that the union could be forced to withdraw its support. Now, Unite members have taken a step in that direction, voting to cut the union’s Labour affiliation budget by 40 per cent – around £580,000.
The timing of the announcement is significant. Wednesday 11 March marks the one-year anniversary of the first day of the Birmingham bin strikes. Since then, the city’s refuse workers have been locked in a dispute with the Labour-run council over proposals to reform the waste service that the union says would lead to significant pay cuts for some workers. Announcing the cut to the affiliation budget, Unite accused Labour of “incompetent behaviour” over its approach to the strikes.
Unite has consistently expressed strong disappointment with the government over its handling of the dispute. In July last year, the union voted to suspend the membership of Angela Rayner – then deputy prime minister – in protest at the government’s approach to the strike, although sources close to Rayner said she had already resigned from the union months earlier.
Of the decision to cut the affiliation budget in response to the bin strikes, a Labour source said it is “incredibly frustrating that the bins dispute has not yet been resolved”, adding that Unite “could and should end the strikes”.
Relations between Labour and Unite have been on a downward trajectory that predates the bin dispute. The union did not donate to Labour during the 2024 general election campaign and declined to endorse the party’s manifesto. The vote to slash the union’s affiliation budget represents another blow for Labour. Unite has historically been one of the party’s largest financial backers. A Labour spokesperson said: “The Labour Party is proud to be funded by our dedicated party members, affiliated supporters, trade union members and party donors.”
The announcement has sparked concern among some Labour backbenchers. Following the news, one MP described the decision simply as “very bad”. Ian Byrne, the MP for Liverpool West Derby – who worked as a Unite organiser before entering parliament – said: “Any loosening of the ties to the trade unions that created the Labour Party should worry us all massively.” He added: “It’s yet another sign that the Party and government must change direction and put the working class at the heart of its policies.”
In January, the Mainstream group of soft-left Labour MPs and peers held a parliamentary meeting with some of the Birmingham bin strikers. Unite members involved in the strike briefed MPs and peers in the House of Commons about the dispute. A Mainstream source said workers “spoke emotionally of the extreme financial hardship they have faced during the dispute” and asked MPs and peers to support efforts to reopen negotiations.
The briefing was chaired by Mainstream MP Paula Barker, who said of the meeting: “The deterioration of relationships between Labour and a number of our historic trade union partners is a warning we can’t afford to ignore.” Commenting on the decision to cut the union’s affiliation budget by 40 per cent, Luke Hurst, Mainstream’s national coordinator, said: “This is yet another wake-up call for Labour – but is the leadership listening?”
Signs of disquiet from Unite have been brewing for some time. Graham has repeatedly made her dissatisfaction with the government clear. However, the latest development may struggle to break through the ongoing fallout from the Mandelson affair, after the government released its first tranche of documents today.
But this is unlikely to be the end of the story. Unite has said it will now formally consult its members on whether the union should remain affiliated to Labour. If relations between the two continue to deteriorate, could a partnership spanning more than two decades soon come to an end?
[Further reading: Peter Mandelson demanded more than half-a-million pounds after being dismissed]
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