Advertisement

  1. National

Labour to cut ties with Co-operative Bank

Labour is looking to end its long-standing relationship with the troubled Co-operative Bank. The party's general secretary Iain McNicol is understood to want to move a £1.2 million loan to the trade union-controlled Unity Trust Bank.

Labour party to cut ties with Co-operative bank

The Labour party is looking to end its long-standing relationship with the troubled Co-operative Bank, which stretches back to 1920.

The Labour party wants to cut its ties with the Co-operative bank Credit: Rui Vieira/PA Wire/Press Association Images

Labour's general secretary Iain McNicol is understood to want to move a £1.2 million loan from the Co-op to the trade union-controlled Unity Trust Bank and current accounts are also likely to be shifted, according to PA.

The move comes after a tumultuous period for the bank, which has seen record losses and the resignation of chairman Paul Flowers, who is now facing drug possession charges.

Labour said the change of loan provider was for "commercial reasons", but the controversy gripping the Co-op over the past year is thought to have strained relations.

More top news