UNITE is cutting its funding of Labour and directing money to grassroots movements instead, in a move partly driven by anger at the damages paid to Panorama “whistleblowers.”

Britain’s largest trade union is to reduce its affiliation to the party by 10 per cent, or 50,000 members – understood to amount to £1 million – after its executive council narrowly voted for the move on Tuesday night.

Announcing the decision today, Unite general secretary Len McCluskey stressed that the union would remain Labour’s biggest affiliate despite the cuts.