Len McCluskey's rival sees red after union bill for hotel complex 'soars to £74million'

Len McCluskey's 'moral authority' was called into question yesterday as the storm deepened over his union's multi-million-pound hotel deal.

Gerard Coyne – an ally of Sir Keir Starmer who wants to succeed Mr McCluskey as general secretary of Unite – called for 'openness and transparency' on the eve of crisis talks.

He urged Unite to introduce tough new rules which would force its leadership to declare any financial interests, gifts and other benefits.

Mr McCluskey, one of the Labour leader's fiercest critics, is himself under fire over the funding of a luxury hotel and conference centre in Birmingham. The project includes a 170-bedroom Marriott-branded hotel, a conference room, an education centre and regional offices for Unite.

The furore over the deal was first revealed by the Mail in December. The union's bill is now reported to have more than doubled from £35million to £74million in just five years. Some sources said union officials initially claimed it would cost just £7million.

Unite boss Len McCluskey's 'moral authority' was called into question yesterday as the storm deepened over his union's multi-million-pound hotel deal. The Birmingham complex is being built by The Flanagan Group, a Liverpool-based company run by Paul Flanagan. Merseyside Police is investigating the firm amid an inquiry into the sale of council land – and Mr Flanagan himself was arrested in September. Pictured: Paul Flanagan with Len McCluskey at the unveiling of the artwork at the St Thomas Street Hotel, Victoria Street, Liverpool File

The complex is being built by The Flanagan Group, a Liverpool-based company run by Paul Flanagan. Merseyside Police is investigating the firm amid an inquiry into the sale of council land – and Mr Flanagan himself was arrested in September.

Another contract for the hotel project went to a company owned by David Anderson, the son of Liverpool mayor Joe Anderson. Both men were also arrested by Merseyside Police last year.

There is no suggestion that the Unite contract is linked to the police inquiry. There is also no suggestion of any wrongdoing in the decision to award the contract to The Flanagan Group – or that Mr McCluskey had anything to do with the tendering process.

However, Mr Coyne said in an open letter to Unite's members that its leadership must answer 'widespread criticism and serious questions over the hugely-over-budget project'.

McCluskey is under fire over the funding of a luxury hotel and conference centre in Birmingham. The project includes a 170-bedroom Marriott-branded hotel, a conference room, an education centre and regional offices for Unite

He added that members had a right to know whether money had been spent 'wisely' and 'properly overseen'; what the scheme's true cost was; and whether contracts were awarded in the correct fashion. 

On the eve of a special meeting of Unite's ruling body tomorrow, Mr Coyne urged the union to clean up its act. He pointed out that it has 'no code of conduct, no register of interests and no requirement to declare gifts and benefits'.

Mr Coyne called for the introduction of strict rules on these matters, which should apply to everyone at the top of the organisation, including Mr McCluskey. 'It is the basic minimum in any well-run organisation, let alone one which should stand for moral authority,' he said.

Gerard Coyne – an ally of Sir Keir Starmer who wants to succeed Len McCluskey as general secretary of Unite – called for 'openness and transparency' on the eve of crisis talks over a hotel deal File

'This union can be a powerful force for good but only if we embrace openness and are transparent.' Mr Coyne, who narrowly lost the bitter battle for Unite's top job in 2017, confirmed he plans to run again when Mr McCluskey steps down next year.

Unite has said of the Birmingham project: 'Continuing efforts to create the impression that something untoward has occurred with the construction of our Birmingham facility are pathetic.

'This is a world-class facility, which will provide conference, education and hotel facilities for our entire union and help regenerate a neglected part of the UK's second city.

'The costs and management of the project will be considered by our executive on Friday. It would be completely inappropriate for Unite to enter into discussion of these with the media beforehand.'