Labour could struggle to fight an election because it is short of cash

Jeremy Corbyn’s party is so short of cash it could struggle to fight an Election against the new Tory leader, Labour MPs fear.

Deputy Labour leader Tom Watson put pressure on party officials last week to come clean over mounting concerns that the party was running out of money.

Those concerns include reports that Labour is even having difficulty getting credit from banks as the party loses members over its Brexit policy and disillusionment with Mr Corbyn.

The row also comes amid a pay dispute with party staff which could lead to strike action and the embarrassing prospect of Mr Corbyn of having to cross a picket line to get into this Autumn’s Labour conference.

But MPs protest that party officials ‘just won’t tell us how much money we have.’

Mr Watson’s intervention came at last week’s meeting of Labour’s Parliamentary Committee. Sources say the deputy leader raised concerns which were being voiced by many fellow MPs.

One senior MP said: ‘We could be facing an Election against Boris Johnson or another new Tory leader within a few months. But there are growing rumours we won’t have enough cash.

‘Problem is, getting an answer out of the Corbyn-led party machinery is well-nigh impossible.’

Labour staff rejected a third and ‘final’ pay offer from party managers last night and are now poised for an ‘indicative’ ballot on who would be prepared to strike.

One MP said: ‘If this leads to strike action and a picket outside our party conference, what the hell do we do? Respect it and boycott our own bloody conference?’

Last night, Labour sources said the party was ‘debt free’ and had not applied for any credit or loan facility. They said ‘cash flow is not an issue’, adding its next set of accounts would be filed next month.

Mr Watson’s intervention came at last week’s meeting of Labour’s Parliamentary Committee. Sources say the deputy leader raised concerns which were being voiced by many fellow MPs [File photo]