Labour's trade union backers have attacked Millbank bosses for running £6 million into the red - with a £3 million overspend on campaigning at the general election.

Union chiefs have called for extra checks on expenditure, and announced plans to "sponsor" party officials in a bid to prevent redundancies at the Labour HQ.

Newly elected general secretary of the Amicus trade union, Derek Simpson, warned Labour that while the party could rely on cash donations, it could not count on his political support.

"While I have assured on the question of funding, I have made perfectly clear that our members will reserve the right to disagree on policy," he said.

Nine union leaders, including TGWU boss, Bill Morris, have warned Tony Blair opposition to action against Iraq.