Labour was engulfed in a new anti-Semitism storm last night after one of its MPs suggested the seven rebels who broke away from the party were being secretly bankrolled by Israel.

Ruth George said it was ‘possible’ the Israeli state was financially backing her former colleagues.

The extraordinary row came as the Jewish Labour Movement (JLM), which has been the party’s official Jewish group for 99 years, threatened to disaffiliate and quit the party.

Ruth George, MP for High Peak in Derbyshire, said last night in a Facebook post that it is 'possible' the 'gang of seven' may have been receiving money from Israel

What Ruth George posted: ‘Support [for the Independent Group] from the State of Israel, which supports both Conservative and Labour “Friends of Israel” of which Luciana was chair is possible and I would not condemn those who suggest it, especially when the group’s financial backers are not being revealed. It’s important for democracy to know the financial backers for any political group or policy.’ Her later apology: ‘On my earlier response to a Facebook comment, I unreservedly and wholeheartedly apologise for my comment. I had no intention of invoking a conspiracy theory and I am deeply sorry that my ill-thought out and poorly worded comment did this. I withdraw it completely.’ Advertisement

The group said it would hold crisis talks to decide ‘where we go from here’ after the seven departing Labour MPs said the party had become ‘institutionally anti-Semitic’. Wes Streeting, a Labour MP and vice-chairman of the All Party Parliamentary Group for British Jews, warned that such a move ‘would be a nail in the coffin for the Labour Party itself’.

Miss George last night ‘unreservedly and wholeheartedly’ apologised for her comments and said she had no intention of ‘invoking a conspiracy theory’. The MP had claimed that the ‘Gang of Seven’, which includes Jewish MP Luciana Berger and Chuka Umunna, may have been receiving money from Israel.

In a Facebook post, she suggested that ‘support from the State of Israel, which supports both Conservative and Labour “Friends of Israel” of which Luciana was chair is possible and I would not condemn those who suggest it, especially when the group’s financial backers are not being revealed’.

‘It’s important for democracy to know the financial backers for any political group or policy,’ she added.

Tory MP Simon Clarke said Miss George’s posts were ‘staggering’, adding: ‘All the lazy conflation of smears about Israel, Jewish MPs and those who dare to criticise the hideous state of the Labour Party are on display in full technicolor.’

Luciana Berger MP and six others left the Labour party yesterday saying it had become 'institutionally antisemitic'

Chuka Umunna MP called for other MPs to join the breakaway group yesterday

Miss George’s comment had been made in response to a request to condemn an activist who had labelled the breakaway MPs ‘Israelis’. The MP said: ‘I would condemn the calling of anyone as an Israeli when it’s not the case. The comment appears not to refer to the independent MPs but to their financial backers.’

Yesterday, Mr Umunna urged members from all parties to join them in building an ‘alternative’ to the current two-party system, which he said was ‘fundamentally broken’.

Labour was last night warned it could face a mass exodus of Jewish members following the decision by Miss Berger warning that she could no longer ‘remain in a party which I have come to the sickening conclusion is institutionally anti-Semitic.’

Conservative MP Simon Clarke said Miss George's posts were 'staggering'. He added: 'All the lazy conflation of smears about Israel, Jewish MPs and those who dare to criticise the hideous state of the Labour Party are on display in full technicolor'

The Jewish Labour Movement plans to hold emergency meetings on March 6 to help decide if it wants to remain affiliated to the Labour party. Luciana Berger (pictured) needed police protection at 2018's party conference in Liverpool

The JLM is considering holding a ballot of its 2,000 members to decide whether to disaffiliate. National secretary Peter Mason said emergency meetings would take place in London and Manchester on March 6.

He said: ‘Far too little has been achieved for the party to be able to claim in all honesty that it upholds the “zero tolerance” environment promised to us and the Jewish community those many months ago. Instead, we have seen the entrenching of a culture of anti-Semitism, obfuscation and denial.’ Two JLM executive members, Adam Langleben and Joe Goldberg, yesterday said they were quitting the party.

Mr Streeting said: ‘The Jewish Labour Movement is one of Labour’s oldest affiliates – predating even some of our most well-known trades unions. They helped found and build the Labour Party. If Jewish members disaffiliate, and it is ultimately their choice, it would be a nail in the coffin for the Labour Party itself.’

Labour MP Wes Streeting said that if the group that helped 'found and build' the party leave it would be 'a nail in the coffin for the Labour party itself'