Unions to cut Labour funds

LABOUR'S biggest benefactors are to cut nearly pounds 400,000 from donations at a time when the party is experiencing severe financial problems.

The Unison public-service union, the Transport and General and the GMB general union, which together contribute more than a quarter of funds, are to make big cuts. It is a barometer of falling union membership but there is also disquiet among senior activists about the political direction of the Government under Tony Blair's stewardship.