Queen's Speech: David Cameron announces law to slash Labour's union funding

28-05-2015 10:21
After leading the Tory Party to its first majority for 23 years, the Prime Minister unveils legislation that could see donations to Labour fall by tens of millions of pounds every year.
 
David Cameron has launched an assault on Labour's reliance on the unions as he used his Queen’s Speech to unveil new laws which could see the party's funding slashed.
After leading the Tory Party to its first majority for 23 years, Mr Cameron unveiled legislation that could see donations to Labour fall by tens of millions of pounds every year.
In a surprise move the Conservatives introduced a new law to reform the way union activists pay a “political levy” to Labour.
Under the Conservative plans, union members will have to opt-in to paying an annual amount to Labour, rather than opting out as at present.
 
It will dramatically reduce Labour’s funding from the unions and would significantly hamper the party’s ability to fight general elections.
In Northern Ireland, which has an opt-in system, fewer than 40 per cent of union members chose to pay into political fund. Under the current system in the rest of the UK just 8.8 per cent of union members opt out.
The Unite union, run by Len McCluskey, gave Labour £19 million in the last Parliament.
The unions reacted with fury to the measures, accusing Mr Cameron of a “shamelessly partisan attack” that would “take Britain back to the 1920s”. Labour sources described the pledge as a “stitch-up”.
 
It came as Mr Cameron used his first Queen's speech as Prime Minister of a majority government to drive through major reforms to tax, welfare and Britain’s anti-terror laws.
He said that the Tories have a “golden opportunity” to back working people in Britain.
 
The Queen’s Speech contained 26 bills, including laws to cut taxes for 30 million people, reduce the benefits cap from £26,000 a year to £23,000 a pledge to increase free childcare for working families.
There were also measures to reduce the “incentives” for foreign migrants to come to the UK.
 
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