![Unite's hotel [image from Google Street View]](/assets/news_articles/2025/07/1753249547_unite-hotel.jpg)
The seven-storey Unite Hotel in Aston Science Park was commissioned by former general secretary Len McCluskey. Liverpool contractor Flanagan was given the job without a competitive tender and overcharged by at least 拢30m, according to subsequent investigations commissioned by current general secretary Sharon Graham after she took over in 2021 on a mission to clean the stables.
Graham also instructed a full re-audit of Unite鈥檚 2021 accounts by auditor BDO. The auditor has now made an initial report, which found a 鈥減ervasive fraud environment鈥� existed under the previous leadership. This has led to an impairment (write-down) of 拢66m on Unite鈥檚 accounts, which will be released by BDO in the coming weeks.
Unite鈥檚 report into the affair found that McCluskey signed the contracts, overruled Unite staff who raised questions about the firm, and overruled lawyers who advised against the contracts.
The union paid at least 拢110m for the project, but the valuation showed that the project was only worth 拢37.5m.
The union therefore spent more than 拢70m more than the complex is actually worth. Some of this may be due to legitimate cost increases, bad planning and bad decisions btu at least 拢30m of the difference is attributed to 鈥渆xcessive building costs鈥� charged by Flanagan.
Unite has now released key findings from the independent investigations into allegations of historical fraud and corruption at the union. The document, called 鈥淧roject Clean Up: Interim Report into Historical Allegations of Corruption,鈥� is available at聽
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