21:57
Tieng Anh Vui
The leader of Labour's biggest union donor has said he has "no trust" in the party's handling of a growing row over the selection of a candidate in Falkirk.
Len McCluskey denied Unite tried to influence the choice by packing the local party with its members, saying an internal inquiry was a "disgrace".
His comments came after MP Tom Watson quit as Labour's election co-ordinator.
Mr Watson's office manager Karie Murphy was the union's preferred candidate.
In his resignation letter to Labour leader Ed Miliband, the West Bromwich East MP wrote it was better for the "future unity" of the party that he stood down.
In a letter to Labour's general secretary, Unite general secretary Mr McCluskey said the union had "nothing whatsoever to do" with the alleged attempt to sign 100 or more members to the constituency party and paying their subscriptions.
"The report has been used to smear Unite and its members," he said. "It is noteworthy that members of the shadow cabinet have been in the lead in initiating this attack."
He demanded an independent inquiry into the events in Falkirk be held.
Mr McCluskey said Labour's internal investigation was "simply a stitch-up" designed to "produce some evidence, however threadbare, to justify pre-determined decisions".
"The mishandling of this investigation has been a disgrace," he said.
"I, however, am obliged to uphold the integrity of Unite, and I can no longer do so on the basis of going along with the activities of a Labour party administration in which I can place no trust."
Membership rules
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The Labour leader wanted Watson's ruthlessness, organisational skill and campaigning zeal to help him reach Number 10. Today, though, Miliband has had to accept Watson's resignation”
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The BBC's political editor Nick Robinson said the row was the "most serious crisis" Mr Miliband has faced since becoming Labour leader.
It represents a wider battle over the future complexion and direction of the Labour Party and Mr Miliband was now trying to turn the row into something defining and positive, said our political editor.
Labour has suspended Karie Murphy and Falkirk party chairman Stephen Deans and taken direct control of selecting a candidate to contest the Westminster seat at the next general election in 2015.
In a statement, Labour said that there were allegations that Ms Murphy and Mr Deans may have been involved in a breach of Labour Party regulations relating to "potential abuse of membership rules".
It also closed down the scheme under which unions could sign up members to the Labour Party and pay the fees on their behalf.
Labour leader Ed Miliband said: "I am not going to have abuse of membership procedures and parliamentary selections in my party, and that is very clear, and I want to be clear about that to the leadership of Unite the Union in particular."
Angela Eagle, the shadow leader of the House of Commons, says the Labour party cannot have an uncritical relationship with the unions.
She told the BBC's Newsnight programme: "Being proud of our trade union links doesn't mean that we can tolerate what went on in Falkirk.
"What the leader of the Labour Party's been doing is demonstrating that we have to ensure that our parliamentary selections are fair and transparent, with integrity and we have to look after the Labour party's rules and the integrity of the Labour party rules."
Conservative Party chairman Grant Shapps said Mr Watson's resignation was a "clear vote of no confidence in Ed Miliband's weak leadership from the man he brought in to run his campaign. But this still doesn't change the fact that Len McCluskey's Unite union is taking over the Labour Party".
The Falkirk vacancy emerged when MP Eric Joyce was kicked out of the party after committing an assault in a House of Commons bar.
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