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Labour looks to cut ties with Co-op Bank

The Labour Party is looking to sever its links with the Co-operative Bank, bringing one of the oldest political and banking relationships in the UK to an end.

The BBC reports that Labour’s general secretary Ian McNicoll is seeking to move loans worth more than £1m from the Co-op Bank to the trade union-owned Unity Trust Bank, as well as the party’s current account facilities.

It quotes senior sources as saying the last year of controversy at the Co-op Bank has strained relations between the two organisations, while the bank is also seeking to become apolitical.

Earlier this month the Co-op Bank posted a loss of £1.3bn for 2013, after revealing a £1.5bn capital black hole last year.

The Co-op movement has had a financial relationship with Labour since the two joined as parties in the 1920s.

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