Union Scandal Reveals Lavish Benefits and £30m Overspend on Hotel Project

Former Unite general secretary Len McCluskey allegedly accepted luxury private jet flights and premium football tickets arranged by a construction firm embroiled in a multimillion-pound financial scandal, according to a leaked union investigation.

Project Costs Spiral Out of Control

The report reveals contractors Flanagan Group – led by McCluskey's associates – overcharged Unite by at least £30m for a Birmingham hotel and conference center project. Total spending ballooned to £125m for a facility now valued at £38m, with auditors citing "no competitive tendering process" and ignored warnings about the firm's history of delays and budget overruns.

McCluskey, a key ally of former Labour leader Jeremy Corbyn, reportedly "overruled" internal legal and operational advice to approve the deal. Union leader Sharon Graham, who launched the probe after uncovering accounting irregularities, stated: "It’s either rank incompetence, or it’s something else."

Luxury Travel Under Scrutiny

Investigators found Flanagan Group arranged at least two private jet trips for McCluskey to attend Champions League finals in 2018 and 2019, with one Falcon 900B flight estimated to cost up to £47,500. The ex-union chief also allegedly received tickets to five Liverpool FC matches, including VIP hospitality packages.

While McCluskey’s lawyers insist he "paid for his own travel in full" and denies overriding staff decisions, the report states there’s "no indication" he reimbursed the contractors. Unite had no formal gift policy during his tenure, though one has since been implemented.

Fallout and Recovery Efforts

The Serious Fraud Office is investigating the project, which began with a £7m estimate in 2012 before costs skyrocketed under McCluskey’s leadership. Current general secretary Sharon Graham has vowed to recover funds, declaring: "This is members' money – I expect it back in the union."

Flanagan Group previously defended its work as meeting "radical design changes," but declined to address the latest allegations. Meanwhile, Unite continues restructuring its financial oversight to prevent future mismanagement.