McCluskey’s hotel bill for union soars to £98million

LEN McCluskey admitted yesterday that the bill for his union’s controversial hotel and conference centre has trebled to almost £100million.

Unite’s general secretary told a crisis meeting of the union’s executive that costs had spiralled because the organisation would not stand for ‘shabby practices’ or low pay.

Insiders said the initial estimate for the Birmingham project was £35million, while one report put it as low as £7million. Claims emerged this week that the bill had hit £74million – only for Mr McCluskey to reveal the figure was now £98million.

Unite’s crisis meeting came amid a growing row over the union’s building contract with the Flanagan Group, as revealed by the Mail last month. Merseyside Police is investigating the Liverpool-based firm amid an inquiry into the sale of council

‘The cost is out of control’

land, and founder Paul Flanagan 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 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 a contract to the Flanagan Group, or that Mr McCluskey had anything to do with the tendering process. ‘We take the management of our members’ money seriously,’ he said yesterday, adding that complaints about the project were part of a ‘smear campaign’ against the union.

However, one of Mr McCluskey’s critics said blaming labour costs was ‘nonsense’.

‘That should have been factored into the deal... from the outset,’ they said. ‘McCluskey has admitted the union’s worst-kept secret – the cost of the hotel and conference centre is out of control.’