Zarah Sultana has quit Labour to form a new party with Jeremy Corbyn.
The Coventry South MP revealed other Independent MPs would also be joining the new party, led by her and the former Labour leader.
Since losing the Labour whip a year ago, she currently sits in the Commons as an Independent.
A recent poll by More in Common revealed a new left political party could secure 10 per cent of the vote, primarily taking votes from both Labour and the Greens.
In a statement on X, she said: “Today, after 14 years, I’m resigning from the Labour Party. Jeremy Corbyn and I will co-lead the founding of a new party, with other Independent MPs, campaigners and activists across the country.
“Westminster is broken but the real crisis is deeper. Just 50 families now own more wealth than half the UK population. Poverty is growing, inequality is obscene and the two-party system offers nothing but managed decline and broken promises.
“A year ago, I was suspended by the Labour Party for voting to abolish the two-child benefit cap and lift 400,000 children out of poverty. I’d do it again. I voted against scrapping winter fuel payments for pensioners. I’d do it again.
“Now, the government wants to make disabled people suffer; they just can’t decide how much. Meanwhile, a billionaire-backed grifter is leading the polls, because Labour has completely failed to improve people’s lives. And across the political establishment, from Farage to Starmer, they smear people of conscience trying to stop a genocide in Gaza as terrorists.
“But the truth is clear: this government is an active participant in genocide. And the British people oppose it. We are not going to take this anymore.
“We’re not an island of strangers; we’re an island that’s suffering. We need homes and lives we can actually afford, not rip-off bills we pay every month to a tiny elite bathing in cash. We need our money spent on public services, not forever wars.
“In 2029, the choice will be stark: socialism or barbarism.
“Billionaires already have three parties fighting for them. It’s time the rest of us had one.”
*This is a breaking story and will be updated shortly*