Fire union warns Reeves it could end Labour support

Rachel Reeves has been warned that she could trigger Labour’s biggest donors to disaffiliate from the party if she continues to “pander to the right” in the Budget.

- DAVID MADDOX

The warning from a trade union boss comes as the chancellor gave an interview to Bloomberg TV, confirming that she is pushing for more spending cuts, including on welfare.

Fire Brigade Union (FBU) general secretary Steve Wright told The Independent that Labour is at a crossroads, with unions like his debating whether they should financially back the party any more. The loss of union donations ahead of the next general election would cost Labour millions. In the first quarter of 2025 alone, the party received almost £1.2m from trade unions.

But despite this threat, the chancellor has made clear that in a turbulent economic period, she needs more headroom than the £9.9bn she gave herself previously. This will mean both tax rises and cuts in a crucial Budget, which the chancellor concedes will not be popular with the public, but many believe could decide the fate of Sir Keir Starmer’s government.