The GMB union is slashing its Labour Party donations by £1 million in protest at the private sector's greater role in public services.
The union's executive is cutting £250,000 immediately from its expected £650,000 donation this year.
But the 70-member executive went further than expected and decided to cut funding over the next four years.
The decision follows a speech yesterday by Prime Minister Tony Blair who warned it was "reform or bust" for public services.
Visit the GMB website here.
Updated: 14.10 Tuesday, July 17
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