Ed Miliband will later take one of the biggest gambles of his leadership by vowing to radically reform Labour's relationship with the unions.
In a move that could cost his party millions in funding and lost membership, Mr Miliband will unveil steps to weaken union influence.
Under his proposals, sparked by the Falkirk ballot-rigging scandal, union members will no longer be automatically affiliated to Labour when they join.
Members will instead be given the chance to "opt in" to a £3 donation which currently goes straight to the party, Mr Miliband will announce this lunchtime.
"I do not want any individual to be paying money to the Labour Party in affiliation fees unless they have deliberately chosen to do so," he will say.
Mr Miliband is battling to head off a crisis sparked by events in Falkirk, where Unite is accused of trying to use its members to secure selection of a particular candidate.
Labour has given evidence to police in Scotland related to the claims but it has sparked wider questions and put the leader under major pressure to curb union influence.
On Monday, the Tories called on the Met Police to investigate the selection in two more constituencies - this time in Greater London.
Unite, which has given Labour more than £8m since 2010, denies any wrongdoing and branded the move an "obscene" political stunt which would waste police time.
Unite boss Len McCluskey Party sources insist Mr Miliband had always intended to deliver reforms but there was no attempt to deny that the timing of the announcement was linked to the Falkirk scandal.
Crucially, however, it was emphasised that the changes would need to be "carefully implemented in detail and over time" and no explicit timetable has been given.
And even before the speech was delivered, Unite boss Len McCluskey - who is at the centre of the row - indicated he would oppose the proposals.
He said: "Switching to an 'opt-in' for the political levy wouldn't work. It would require Labour to unite with the Tories to change the law, would debilitate unions' ability to speak for our members and would further undermine unions' status as voluntary, and self-governing, organisations."
Mr Miliband's plans to end the "politics of the machine" would see millions of trade union members decide individually whether they wanted to be affiliated to the party.
Spending caps would apply in domestic and European parliamentary elections, covering both would-be candidates and any organisation backing them.
There would also be a new code of conduct for aspiring candidates, with the prospect of disqualification if they break the rules.
And standard constituency agreements with unions would aim to ensure no one involved in the selection process could be subjected to "undue local pressure".
Mr Miliband will also announce plans to use a system of US-style primaries to pick Labour's next candidate for mayor of London.
The approach could be extended to the selection of parliamentary candidates where the local constituency party is weak.
The Labour leader is expected to say: "What we saw in Falkirk is part of the death-throes of old politics. It is a symbol of what is wrong with politics. I want to build a better Labour Party - and build a better politics for Britain."
Officials acknowledge ending automatic affiliation will represent a financial "hit" for the party but Mr Miliband will argue it is also an opportunity to mobilise union members.
"I believe this idea has huge potential for our party and our politics. It could grow our membership from 200,000 to a far higher number, genuinely rooting us in the life of more people of our country," he will say.
Conservative Party Chairman Grant Shapps claimed the plans were meaningless.
"Under Ed Miliband's weak proposals, including a code of conduct that already exists, it would still be the same old Labour Party - bankrolled by the unions, policies rigged by the unions and candidates chosen by the unions," he said.
"The reality is Ed Miliband cannot change Labour because he cannot stand up to the union barons who elected him. That means he's too weak to stand up for hardworking people and too weak to run the country."
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