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The trade union is the second-largest in the UK and is led by staunch Corbynista, Len McCluskey. Mr McCluskey has been a critic of the current Labour leader who had campaigned for Rebecca Long-Bailey during the leadership contest earlier this year. In a further blow of the relationship between Unite and Sir Keir, the union has dropped its financial contribution to Labour by 10 percent.
Unite contributed £7million to the party last year and thus could spark a large financial hole in Labour’s funding.
Mr McCluskey told BBC Newsnight: “When I first joined, members questioned why we were paying New Labour so much money.
“There will be that demand again.
“I think funding arrangements is undoubtedly an issue that may come up.
“I’ve got an executive next week, and there’s some anger to the fact the Labour Party paid out money to individuals who were suing the Labour Party.”
A Unite source told The Sunday Times’, Gabriel Pgrund: “We are fed up with being taken for granted.
“Unite’s support is not guaranteed and we had to send a message.”
The Unite union is a powerful player in Labour Party politics with its 1.2 million members.
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Earlier this year, Mr McCluskey had warned the new leader not to take the party for granted.
He also claimed the party would fail if it was taken too far to the right.
He added: “For me, he has to recognise that the ship he is sailing, if it lists too much to the right, then it will go under.
“It would be a mistake if anybody took Unite for granted.
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“I think that would be a mistake.”
Since becoming Labour leader, Sir Keir has looked to pull the party away from its left-wing standing.
Sir Keir has also removed certain key allies of Mr Corbyn as he attempted to take the party forward following its terrible election performance.
Mr Corbyn’s political aide, Seumas Milne left in April, while general secretary of the party, Jennie Formby also stood down in May this year.
Despite the departure of some of Mr Corbyn’s key allies, Mr McCluskey claimed the left of the party remains strong.
He added: “The election of Keir against the perceived left candidate Rebecca Long-Bailey was a further disappointment.
“So people have to brush themselves down, but the reports of the left’s death are greatly exaggerated.
“We are going nowhere.
“And we stand for those principles of radicalism and socialism that we’ve fought for all our lives.”
Sir Keir had also a party pressure after three MPs resigned from roles after defying the party whip.
The MPs voted against the Overseas Operation Bill, which the Government aims to shield British soldiers from prosecution.
Beth Winter MP for Cynon Valley, Nadia Whittome MP for Nottingham East, and MP for Sheffield Hallam Olivia Blake, all defied the whip to vote against the party.
They all stepped down from their junior roles last month and joined a further 15 Labour MPs who voted against the party.
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