Ed Miliband under assault from unions

Ed Miliband came under assault from Labour’s union backers yesterday, as fury over his decision to embrace austerity measures led to open discussions about the withdrawal of financial support for the party.

But the Labour leader responded defiantly, telling his critics he was determined to “do the right thing by the country” and if they did not like that, it was “tough”.

He called on public sector workers to “prioritise jobs over pay” and accept wage restraint in order to avoid redundancies and cuts to services.

“Let’s do it in a fair way, but let’s preserve jobs and services,” he said. “I think most people will think it is the right choice.”

Unions affiliated to Labour have been fuming since shadow chancellor Ed Balls said on Saturday that he would not promise to reverse Government cuts or lift the one per cent pay cap on public sector workers.

Unite leader Len McCluskey went public with his anger, using a newspaper article to warn that Mr Miliband was setting Labour on course for electoral “disaster” and undermining his own leadership.

And GMB general secretary Paul Kenny wrote to the union’s senior officials saying that Mr Balls’s speech could have a “profound impact” on its relationship with the Labour Party.

Conservatives would be “rubbing their hands in glee” at the “serious mistake” made by Labour’s high command, said the message.

“I have spoken to Ed Miliband and Ed Balls to ensure they were aware of how wrong I think the policy they are now following is,” wrote Mr Kenny.

It is now time for careful consideration and thought before the wider discussions begin on the long-term implications this new stance by the party has on GMB affiliation.”

Asked about the prospect that unions, which between them provide 90 per cent of Labour’s funding, might disaffiliate from the party, Mr Miliband said: “They have to make their own decision. I am not going to change my policy in the face of threats.

“I am going to do the right thing.”

And he added: “Of course there are going to be some people in the party don’t like it but I’m afraid that’s tough. We need to do the right thing.”