Internal report reveals ex-UNITE leader bypassed legal advice, enabling massive overspend on a failed project
Len McCluskey, the former general secretary of Unite the Union, has been accused of disregarding multiple legal warnings to push ahead with a disastrous hotel and conference centre project that cost the union over £110 million—despite the development later being valued at just £37.5 million.
A damning interim report published by Unite on Tuesday has laid bare the decisions and culture that enabled what it called “massive overcharging” on the Birmingham-based development. According to the report, McCluskey was repeatedly warned by external lawyers at Slater Heelis as early as April 2017 that key contractual safeguards were missing. The firm advised that “many of the prerequisites” for such a major building contract were absent and urged caution.
Despite this, McCluskey signed off on the contract without incorporating most of the legal amendments proposed. Slater Heelis noted that the union’s leadership rejected the changes, stating there was “sufficient trust between the parties” to render legal protections unnecessary.
In a later statement, McCluskey claimed he had not read the legal letter or the contracts before signing them. He insisted that he had instead relied on his finance director to ensure everything was appropriate—an explanation dismissed by critics as irresponsibly lax for a project of this magnitude.
Embed from Getty ImagesThe union bypassed any form of competitive tendering, the report adds. Emails reviewed by investigators revealed that McCluskey maintained close personal relationships with directors of the contractor firm ultimately hired for the job. These individuals reportedly arranged luxury perks for the union leader, including tickets to major football finals and travel via private jet.
An independent governance review carried out by law firm Bark & Co went further, describing an “ask no questions” culture within Unite’s leadership. It claimed loyalty was often rewarded with promotions and job offers, making it easier for key figures to act without accountability.
The financial consequences were staggering. Unite paid £110 million for a building now estimated to be worth only a third of that amount. Though redacted for legal reasons due to ongoing police enquiries, the published report paints a bleak picture of internal mismanagement and ignored oversight.
Current general secretary Sharon Graham, who took over after McCluskey’s departure, issued a stark rebuke of past practices: “It is clear from this investigation that money left the union when it should not have. Creating transparency through the publication of this report is only the start. We need to ensure that this can never happen again.”
McCluskey, who led Unite from 2010 to 2021, has denied all allegations of personal benefit. He stated that he did not receive any free travel or football tickets and refuted suggestions that he overruled legal or financial staff.
However, critics say the fallout has severely damaged the union’s credibility, particularly at a time when it remains a key player in the Labour movement. The investigation continues, with the full report expected to be released once police enquiries conclude.
In the meantime, questions remain about how such a colossal failure of governance could take place within one of Britain’s most powerful trade unions—and whether those at the top will ever be held truly accountable.
