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Labour told to drop austerity or face defeat
McCluskey warns Labour could be challenged by new workers' party if it loses 2015 election

Unite union general secretary Len McCluskey warned Labour yesterday to drop its austerity policies or face election defeat and the possible establishment of a new workers' party.

Mr McCluskey urged Labour leader Ed Miliband to adopt radical alternative policies that would give people hope.

But he added bluntly: "If it is a pale shade of austerity, then I believe Labour will be defeated at the next election."

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