Labour wants to lose bankers with redistribution for capital (4,5)
I believe the answer is:
ulan bator
'capital' is the definition.
(capital of Mongolia)
'labour wants to lose bankers with redistribution' is the wordplay.
'to lose bankers' indicates the central letters (letters on the edges or banks are removed).
'with redistribution' indicates anagramming the letters (letters distributed elsewhere).
The central letters of 'wants' are 'ant'.
'labour'+'ant'='labourant'
'labourant' with letters rearranged gives 'ULAN BATOR'.
'for' is the link.
(Other definitions for ulan bator that I've seen before include "capital city" , "Mongolian city" , "Capital of Mongolia" , "Mongolian capital" , "Mongol city" .)