Labour has been warned that it faces strike action over its plans to cut up to a quarter of its workforce due to deepening financial problems.

       GMB and Unite, two of the party’s biggest financial backers, announced on Wednesday that they would ballot members on whether they would support the move after restructuring plans were laid out earlier this week.

       Calling on Labour to rethink the proposals, the unions said party staff should not be "made to pay the price for this reorganisation", which is expected to see as many as 90 jobs axed.

       Labour confirmed last month that it was experiencing significant financial pressures, with David Evans, the general secretary, reportedly telling the party's ruling body that "we don't have any money".

       Allies of Sir Keir Starmer have blamed the party's woes on the legacy of Jeremy Corbyn's tenure as leader, with Labour forced to make a series of payouts in relation to anti-Semitism cases.

       However, Labour also failed to secure an influx of new members following Sir Keir's election, while Unite, the party's biggest backer, is reviewing its funding.

       A voluntary severance scheme is now under way, but earlier this week it was reported that Labour had made it clear more volunteers would need to come forward, prompting fears that compulsory redundancies could be imposed.

       Unite and GMB are planning to hold an indicative ballot of members from Aug 23 to Aug 31, asking whether they would be willing to take strike action if compulsory redundancies were announced.

       Unite regional officer Matt Smith said: "Labour staff have worked tirelessly for the party and should not be made to pay the price for this reorganisation."

       Vaughan West, a GMB organiser, said: "GMB will ask members if they are willing to strike over compulsory redundancies. If the answer is yes, we will not hesitate to move to a formal strike ballot."

       Labour declined to comment.