Jeremy Corbyn is considering establishing his own political party after privately accepting he will never be reinstated as a Labour MP, The Telegraph understands.
The former Labour leader has been urged by many in his inner circle, including his wife Laura Alvarez, to upgrade his charity into a political party, and run under its banner at the next election.
If the party is established, it could tempt the defection of Left-wing MPs who are disaffected with the leadership of Sir Keir Starmer, and could take the name of the Peace and Justice Project, which Mr Corbyn established to coordinate his political activities after he was suspended from Labour.
Mr Corbyn sparked outrage in October 2020 after he responded to a formal inquiry into Labour’s unlawful acts of harassment and discrimination against Jewish people by saying allegations of anti-Semitism were “dramatically overstated for political reasons”.
Although he has since been reinstated as a Labour member,
Sir Keir Starmer has said he will not readmit him to the parliamentary party unless he apologises publically for his comments.
Mr Corbyn has always refused to apologise, but has said he is “determined to eliminate all forms of racism”.
After the failure of some “back channel” negotiations on his return, the former leader has told friends he does not now believe he will have the whip reinstated before the next election, and will be forced to stand in Islington North as an independent candidate unless he establishes his own party.
Sources close to Sir Keir insist the “ball is in [Mr Corbyn’s] court”.
At the 2019 election, Mr Corbyn secured 63 per cent of the vote in the constituency, and those close to him believe he has enough of a “personal vote” to win the seat without Labour’s backing.
A close ally of the former leader did not deny the claims he was considering setting up a new party, but insisted there had been no “advanced discussions”, while a spokesman for the Peace and Justice project said there were as yet “no plans” for it to become a party.
Mr Corbyn’s spokesman said he “wants to see a Labour Party and government that is serious about shifting wealth and power from the few to the many”.
While the discussions are in their early stages, several figures in Mr Corbyn’s inner circle are said to be concerned that setting up a new party could remove enough MPs from Labour that it would dent Sir Keir Starmer’s prospects of winning the next election.
John McDonnell and Diane Abbott, two of the former leader’s closest allies, are said not to be interested in defecting.
The Telegraph has also been told Mr Corbyn plans to use the next 12 months to increase the activities of the Peace and Justice Project, with a tour of the UK to meet voters and campaign on his favourite political issues, such as worker’s rights, human rights and nuclear disarmament. He is also in talks to write a book.
Launching the charity in December last year, Mr Corbyn said it would focus on promoting the causes he has spent his parliamentary career campaigning for.
It is also seen by allies of Mr Corbyn as a means of keeping thousands of left-wing activists, who joined Labour under his leadership, engaged in politics.
The news comes as it was reported that Labour is planning to stand Mary Creagh, a former MP who blames Mr Corbyn for the loss of her seat in 2019, against him at the next election.
Insiders told the Mail on Sunday that the former Wakefield MP stands a good chance of beating her former boss in his own constituency.
Ms Creagh has previously said she believes she lost her seat to the Conservatives because of Mr Corbyn’s “leadership and failure to tackle anti-Semitism [and] bullying in our party”.