Now Unison reviews Labour ties over Miliband pay cap policy

Unison - the country's biggest public sector union, with more than 1.3 million members - held internal talks on the issue and has also called an emergency meeting of the body in charge of managing its relationship with the party, which will take place in the coming weeks.

The Standard understands that senior officials have told Labour they are unhappy with the party's decision to back the Government's public sector pay cap and embrace austerity measures.
That move, made over the weekend, has already sparked furious opposition from other unions which represent public servants.

Len McCluskey, general secretary of Labour's biggest donor Unite, today warned of "serious implications" for the union's historic link with the party, while GMB chief Paul Kenny has also threatened to cut ties.

Labour would face financial ruin if unions, which provide about 90 per cent of the party's cash, severed ties. But Mr Miliband has hit back at his critics, telling them it is "tough" if they do not agree with him.

Insisting his stance is vital to restoring Labour's economic credibility, the party leader said: "I am not going to change my policy in the face of threats. I am going to do the right thing."

Unison's opposition threatened to overshadow an attempt by Mr Miliband to shift attention away from the row by attacking Britain's "rip-off consumer culture".

He set out plans for a new consumer watchdog to counter "predatory" companies that exploit consumers.

Among the ideas is a proposal to cap the cost of car parking at railway stations, which has increased dramatically in recent months. The Labour leader said increases should be limited along with season tickets and other fares.
Other areas earmarked for action are bank charges, hidden airline levies and pension savings fees.

"In every area, you have to call time on the surcharge culture," Mr Miliband told The Daily Telegraph.

"Making a fair profit is important but it can't be done in an underhand and predatory way."
The bid to get back on the front foot was assisted by former shadow chancellor Alan Johnson, who made a rare public intervention to brand union critics "delusional".

He wrote in The Guardian: "Ed has stated a simple fact; that a Labour government will not be able to reverse as many of the cuts the current government is making unless it can show where the money is to come from."