Under pressure: Tony Blair's government has been hit by yet another scandal
Police have launched a new investigation into Labour sleaze after a whistleblower revealed the party is creaming off at least £2m a year of taxpayers' money directly into party coffers.
Tony Blair has ordered thousands of his local councillors to hand over hundreds of pounds each from their publicly-funded allowances to Labour slush funds for electioneering and party propaganda.
The scam - also under investigation by sleaze watchdogs – has been branded a "national disgrace", an "outrageous abuse of taxpayers' money" and an "affront to democracy".
News that their money is being used to line Labour's pockets will enrage council tax payers who have seen their bills soar as town halls have been starved of cash.
Council tax has more than doubled since Labour came to power. In Sunderland it rose last year by 4.9 per cent, double the rate of inflation.
Labour members quietly passed a resolution at their party conference in September calling on all councillors to hand over a percentage of their allowances direct from the council payroll to fill the financial black hole.
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