Labour admits 'financial challenges' after leaked document shows £6 million debt

LABOUR'S general secretary conceded yesterday that the party faced "financial challenges" after a leaked document showed it had debts of at least £6 million.

But despite signs of a deepening rift between the Government and the unions and left-wing MPs, which further threatens Labour’s finances, David Triesman insisted a way would be found to overcome the challenges.

Speaking to delegates at Labour’s first rural conference in Newport, Shropshire, Mr Triesman said that despite some “fantastic results” in rural seats at the last general election, there were some battles ahead.