Yvette Cooper is poised to mount a legal challenge to a shake-up in trade union laws that threatens to bankrupt the Labour Party.

The Labour leadership hopeful vowed to fight the Draconian proposals which she warned would breach human rights legislation.

Under David Cameron’s assault on trade unions, the new law would see union members forced to “opt in” if they want their subscriptions used to fund political parties like Labour.

Yvette Cooper to fight anti-union laws that could bankrupt Labour (pic credit: Daily Mirror)

At present, the 4.5 million union members only have to take action if they want to opt out.

But the new Trade Union Bill would require them to sign a form at least every five years stating they are opting into paying the political levy.

Some union leaders have warned the planned reform could bankrupt the Labour Party.  In Northern Ireland, where the “opt in” rule is already in place, as few as 38% of members have signed up.

Last year, affiliated unions raised £22 million though their political funds. If the law is passed, the change will blow a huge hole in Labour’s coffers and could leave the party teetering on the brink of financial collapse.

Ms Cooper will raise the prospect of a legal challenge to the planned changes after lawyers advised her the shake-up would undermine freedom of association rules as set out in Article 11 of the European Convention on Human Rights.

Ms Cooper plans to slam the “appalling abuse of democracy” for the Tories to legislate to try to slash funding for the Labour Party, while doing nothing to shed more light on corporate donations to the Tory party.

She will vow to fight the Bill in Parliament and repeal it, if the plans become law and she is Labour leader and Prime Minister in 2020.

Ms Cooper said: “I am not going to stand back whilst this Government takes aim at hard-fought workers’ rights, abuses their small majority to try to destroy the Labour Party while it is in oppostion.

“This Bill is an ideological attempt to restrict the trade union and Labour movements’ ability to advance or defend the interests of ordinary people and their families.

 “I will do everything I can to oppose this anti-democratic Bill in Parliament. But if the Tories force it through, we need to be ready to take the unusual move of challenging them in the courts too.

“We cannot let the Tories get away with this malicious political attack on democracy, the Labour party and peoples right to associate and organise through trades unions”