Union cuts funding to Labour

By Adrian Croft

LONDON (Reuters) - One of the country's biggest trade unions said on Tuesday it has halted some financing for the Labour Party and threatened to cut off election funding unless the party stops privatising public services.

The threat by UNISON, Britain's biggest public sector union, increases pressure on Prime Minister Gordon Brown, who has just stamped out an attempted revolt against his leadership of the Labour Party.

Labour turned in disastrous results in June 4 European and local elections and an Ipsos MORI poll for UNISON on Tuesday showed the Conservatives are still on track to win the next national election, which Brown must call within a year.

The Conservatives polled support of 39 percent, down 1 point from the last Ipsos MORI poll at the end of May, while Labour was on 25 percent, an improvement on May's historic low of 18 percent but far from the levels needed to retain power.

UNISON, which has more than 1.3 million members, said it was immediately suspending 100,000 pounds it spends each year on funding local Labour parties around the country in protest at Labour's support for privatisation of some public services.

One million pounds in funding for Labour's campaign for the next national election was also at risk, according to the union, which said it would only support Labour candidates at the next election who opposed privatisation of public services.

"No more blank cheques," UNISON's General Secretary Dave Prentis told a union conference in Brighton.

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