Labour ‘to move from Co-op Bank’

THE Labour Party is reportedly looking to sever its links with the troubled Co-op Bank, bringing to an end one of the oldest political partnerships in the UK.

Ian McNicoll, Labour’s general secretary, is looking to move loans worth more than £1m to the trade union-owned Unity Trust Bank, the BBC said.

The move comes after a year of controversy at the Manchester-based bank, including a £1.5bn back hole in its balance sheet, record losses and the resignation of its chairman, Paul Flowers, who is now facing charges for drugs possession.

The bank, now 70% owned by American investors, is said to want to become “apolitical”, while Labour says the move, which will include its current account facilities, is for commercial reasons.

It is unclear as to whether the wider o-operative movement  will continue to part- fund Labour MPs, including Shadow Chancellor Ed Balls.

The co-op movement and Labour joined as parties in the 1920s and it is believed that the financial relationship started then.