Labour’s top union donor is weighing up a vote to officially cut ties from the party, posing a significant challenge to Sir Keir Starmer’s leadership.

Senior figures within Unite are said to be discussing whether to call an emergency conference that could see the union vote on formally disaffiliating from the party.

Sources say there is “intense frustration” with the Prime Minister among senior union figures as well as grassroots members.

However, Labour MPs insist the party could regain Unite’s backing under a different leader, with one telling The Telegraph: “They would coalesce around one candidate on the Left of the party.”

One Labour MP said the move would make it “very difficult” for Sir Keir to stay on as party leader, describing it as a “seriously bad moment” for him.

The MP added: “This is a major union, it is a major player within the wider Labour movement.

“It is a critically important relationship – but it has become dysfunctional.”

The Prime Minister is battling to hold onto his premiership as dismal polling and growing murmurs of a leadership challenge unsettle his party.

Unite General Secretary Sharon Graham has previously warned the union could cut ties with Labour unless the party changes direction.

Earlier this year, Ms Graham described the Budget as “an absolutely critical point for knowing whether the party’s direction is going to change.”

A Unite source said the idea of formal disaffiliation is now “an ongoing conversation.”

The insider added: “Sharon gave her view after the Budget, and it is pretty strong.

“The direction of travel is there – that is amplifying what workers and members feel.”

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The Unite boss launched a scathing attack on the Government after Rachel Reeves unveiled the Budget.

She fumed: “The Chancellor has picked a side. Health workers, engineers, and tanker drivers will pay through stealth taxes, while City bankers and billionaires go largely unscathed.”

The union has issued several statements criticising Labour’s policies in recent weeks.

It described the workers’ rights bill as a “shadow of its former self”, warning that the Government “needs to keep its promises”.

Unite also tore into Labour’s North Sea strategy, calling it “reckless” and “incompetent”.

Electoral Commission data shows Unite has been Labour’s largest donor over the past 25 years, ahead of Unison and GMB.

Since 2000, the party has received £52.2million from Unite, £43.8million from Unison, and £39million from GMB.

In the year ending this September, unions contributed £5.3million to Labour – the party’s third-lowest annual total since 2001.

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