Labour MP: Party Has 'No Credible Leadership'

A bitter Labour Party civil war has broken out on social media after MP Mike Gapes tweeted the party had "no credible leadership".

The Ilford South MP was attacked by "Corbynistas" after criticising the shadow chancellor's about turn on economic policy on Twitter (Xetra: A1W6XZ - news) .

Mr Gapes wrote: "There is now no collective shadow cabinet responsibility in our party, no clarity on economic policy and no credible leadership."

Corbyn supporters were quick to monster Mr Gapes with calls for his resignation, suggestions he was betraying his party, and was actually a Conservative at heart.

The MP, who has a majority of 20,000, responded with a host of zingers and attracted a number of moderate Labour defenders.

The exchanges expose the deep and growing rift within Labour between Mr Corbyn's Labour Left and the moderates in the party, who fear they are going to be the subject of a purge.

Some Labour MPs last night branded the party leadership an "absolute shambles" after John McDonnell dropped his backing for George Osborne's fiscal charter - just two weeks after pledging to support it.

The shadow chancellor wrote to the party's MPs saying Labour should no longer back Mr Osborne's plan for a budget surplus in a key vote on Wednesday.

His about turn sparked an angry backlash at Jeremy Corbyn's leadership by many MPs, prompting Ilford South MP Mike Gapes to say the party had "no credible leadership".

Mr McDonnell's predecessor, Chris Leslie, said it sent the "wrong message" about Labour's economic policy to the public.

The shadow chancellor justified his decision by referring to a worsening condition of emerging economies and the fact that Mr Osborne's charter would restrict spending on capital investment.

:: Corbyn's Labour: New Politics Or Shambles?

He wrote in a letter to Labour MPs: "We will underline our position as an anti-austerity party by voting against the charter on Wednesday.

"And Labour will set out our plan for tackling the deficit, not through punishing the most vulnerable and decimating our public services, but by ending the unfair tax cuts to the wealthy, tackling tax evasion and investing for growth."

Mr Leslie told the Radio 4 Today programme: "To go from one extreme to the other is wrong in economic terms but also it sends the wrong message to the general public as well.

"So, to be fair to John McDonnell, this is a very difficult balancing act, it's a very difficult topic, but it's incredibly important that his is clear and consistent and explains fully not just what Labour's position is but why he backed George Osborne's surplus a couple of weeks ago and is now against it apparently."

Just a fortnight ago, ahead of the Labour Party Conference, Mr McDonnell announced to surprise that he would back the fiscal charter - he repeated his commitment in an interview at the weekend.

A number of Labour MPs suggest the change of heart comes after Mr McDonnell's economic advisers suggested he take a harder line after SNP's attack on Labour's anti-austerity credentials and the row over tax credits cuts that overshadowed the Conservative Party Conference.

Mr Osborne said: "Labour's economic policy has lurched from chaos to incredibility".

:: Inflation Goes Negative: Lowest Since March 1960

Shadow international development secretary Diane Abbott defended Mr McDonnell's flip-flop and told the Radio 4 Today programme: "At any given time there were will be a group of MPs in Parliament, of whatever party, who are unhappy.

"I suspect my colleagues, on reflection, will calm down and devote their energies to attacking Osborne and his mismanagement of the economy."

SNP economy spokesman Stewart Hosie said: "Labour have found themselves in chaos this morning. They can't even organise themselves to vote against Tory cuts."