The Labour Party and the beleaguered Co-op Bank are heading for a divorce.
The BBC has learnt that negotiations have begun to move a £1.2m loan Labour has with the Co-op Bank to the Unity Trust Bank. The party reportedly plans to move all its current account facilities too.
Labour used to have a £3.9m overdraft facility at the bank, until last year.
A Labour Party spokesperson said: “The Labour Party is constantly reviewing its financial arrangements and all decisions including any loan consolidations will be taken for commercial reasons.”
Last week, the Co-op Group announced a loss of £2.5bn and said 2013 had been a “disastrous” year and the worst in its 150-year history.