Miliband Vows To Reform Labour's Union Ties

Ed Miliband has made one of the biggest gambles of his leadership by vowing to radically reform Labour's relationship with the unions.

In a move that could cost his party millions in funding and lost membership, Mr Miliband unveiled a series of steps to weaken union influence.

Under the plans, union members would no longer be automatically affiliated to Labour and candidates would have to obey a new code of conduct.

Spending caps for would-be candidates and any organisation backing them would apply in domestic and European parliamentary elections.

And standard constituency agreements with unions would aim to ensure no one involved in the selection process could be subjected to "undue local pressure".

A system of US-style primaries would also be used to pick Labour's next candidate for mayor of London and potentially future parliamentary candidates in certain constituencies.

In a bid to shift the pressure onto other party leaders, Mr Miliband also laid down a challenge by pledging to limit MPs' outside earnings if he wins power in 2015.

Unite boss Len McCluskey

And he called for the reopening of stalled talks on party funding, repeating his offer to cap donations from individuals, businesses and trade unions.

His speech in London was sparked by the Falkirk ballot-rigging scandal, which the party leader said was an example of the "death throes of the old politics".

Police are investigating after the Unite union was accused of trying to use its members to secure the selection of a particular candidate in the Scottish constituency.

"Every time something like Falkirk happens, it confirms people's worst suspicions," Mr Miliband said. "I want to build a better Labour Party - and build a better politics for Britain."

His reforms would see union members given the change to "opt in" to a £3 donation which currently goes straight to the party.

"I do not want any individual to be paying money to the Labour Party in affiliation fees unless they have deliberately chosen to do so," he said.

Officials acknowledge ending automatic affiliation will represent a financial "hit" for the party but Mr Miliband claimed it was also an opportunity to mobilise union members.

"It could grow our membership from 200,000 to a far higher number, genuinely rooting us in the life of more people of our country," he said.

In a surprise move, the Labour leader also attacked MPs who earn significant amounts from outside jobs and raised the wider issue of party funding.

He insisted being an MP was a "privilege and a duty" rather than a sideline and called for new rules to limit second jobs and avoid conflicts of interest.

Union affiliations of Labour Party members

Unite general secretary Len McCluskey described Mr Miliband's plans as "very brave" and suggested they could be historic if his vision is realised.

He made clear he too wanted the status quo to change and said he was "attracted" by the ideas set out because it would make trade unionists more active.

But he warned "dramatically" fewer union members would sign up to be affiliated to Labour if an opt-in was adopted.

"I think this is in a sense a dangerous road for him," he said on Sky's Boulton & Co show.

Conservative Party Chairman Grant Shapps claimed the "weak" plans were meaningless and pointed out that a code of conduct already exists.

"It would still be the same old Labour Party - bankrolled by the unions, policies rigged by the unions and candidates chosen by the unions," he said.

"The reality is Ed Miliband cannot change Labour because he cannot stand up to the union barons who elected him. That means he's too weak to stand up for hardworking people and too weak to run the country."

But former prime minister and Labour leader Tony Blair told Sky News he believed it was a defining moment for his successor.

"It is bold and strong. It is real leadership," he said. "He is carrying through a process of reform in the Labour Party that is long overdue and frankly probably I should have done it when I was leader.

"At the same time what he is doing is sending a very strong message to the country that in the end he will do what is right and that he will govern for all the country and not simply one section of it."

Party sources insist Mr Miliband had always intended to deliver reforms but did not deny that the timing was linked to the Falkirk scandal.

After his speech, the leader insisted: "We are going to make this change happen, let me make that clear", but admitted no timetable had yet been set out.

He has appointed former Labour general secretary and union official Lord Collins of Highbury to lead work on the introduction of the new system.

Deputy Prime Minister Nick Clegg said he was prepared to work with Labour to legislate for an opt-in using the Third Party Funding Bill and called on Mr Miliband to "turn words into actions".

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