MP fears Labour 'financial meltdown' over union links

Labour's new relations with the unions was a political gamble that was more than a "Clause 4 moment" for the party, and could lead to "financial meltdown", said the chairman of Trade Union Group of Labour MPs.

Ian Lavery told David Thompson that union money to support Labour was the "cleanest money in politics".

Fellow Labour MP Alan Johnson said it was a "new type of politics after the expenses scandal", and Ed Miliband understood the need for a new settlement with unions.

The Labour leader addresses the TUC conference in Bournemouth on Tuesday, apparently determined to reform the link with the unions.

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