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Reading: A £112 million Unite hotel complex fraud investigation.
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Baner Club > Blog > Business > A £112 million Unite hotel complex fraud investigation.
BusinessCrime and Juistice

A £112 million Unite hotel complex fraud investigation.

The Unite trade union has informed News that the Serious Fraud Office (SFO) will look into a contentious Birmingham hotel and conference center that cost the union over £112 million.

Last updated: 2024/10/22 at 10:54 AM
Published October 22, 2024
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The union, which was formerly the largest donor to Labour, claims it suspects “serious financial wrongdoing” during its tenure under Len McCluskey, a supporter of Jeremy Corbyn, and his associates.
Undertaken between 2011 and 2021 while Mr. McCluskey served as general secretary, the hotel project included new union offices and aimed to reduce conference and hotel room costs.

However, before construction even started, the building’s expenses skyrocketed to £57 million from the original £7 million projection. Unite told News that the project, which was finished in 2020, cost £112 million in total.

A senior barrister and deputy high court judge, Martin Bowdery KC, oversaw an investigation into the initiative after Unite’s current general secretary, Sharon Graham, took over from Mr. McCluskey in 2021.

She also promised to recoup any money owing to the union after “forensic accountants” determined that the hotel, which has 195 rooms and a conference center for 1,000 people, was only worth £29 million.

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