Jennifer James, pictured, has been suspended from the Labour Party after she launched a fundraising campaign to take a legal challenge against a decision to allow transgender women an all-female shortlists

A Labour Party member who set up a crowdfunding campaign to prevent transgender women from standing on all-women shortlist.

Jennifer James has raised more than £20,000 to fund a legal challenge against a decision by the party to allow ‘all self-defining women’ regardless of their legal gender to stand on all woman shortlists.

In a Twitter post, Ms James announced she was under investigation. She wrote: ‘I’ve been suspended from the Labour Party for saying women don’t have d****.’

She later described her opponents as ‘Stalinist squirrels’ after her name appeared on a 'hit-list' of those opposed to transgender women being eligible for all-women shortlists of candidates.

The list was drawn up by 'Labour Against Transphobia' who opened up a google spreadsheet to allow activists to provide evidence of transphobia against fellow party members.

The 51-year-old activist said providing greater representation for transgender people should not mean fewer places for those born female.

However, following her appeal for donations, Ms James was targeted by transgender activists within the party who claimed she was acting in a discriminatory fashion.

Ms James posted a letter on her Twitter feed which outlined her ‘administrative suspension from holding office or representing the Labour Party’.

According to the letter from Sam Matthews, head of disputes, the party’s General Secretary has appointed Investigations Officer Megan McCann to probe the allegations.

Ms James is accused by the party of ‘activity on social media’ which is in breach of the party’s rules. A full report on allegations will be completed.

Jennifer James revealed she has been suspended from the Labour Party for claiming 'women don't have d****.'

Ms James posted details of a spreadsheet which includes her name seeking evidence of 'transphobia' by members of the Labour Party so they can be reported to officials

The letter claimed the investigation was necessary to uphold the party's reputation

Ms James was reported to the Labour Party by a secretive group of party members

The letter said: ‘The administrative suspension means that you cannot attend Party meetings including Annual Conference and you cannot be considered for selection as a candidate to represent the Labour Party at any election at any level.’

Ms James was told the suspension was necessary to ‘protect the Party’s reputation’.

A spokesperson for the party said: ‘The Labour Party takes all complaints seriously, which are investigated in line with Party procedures.’

According to the GoFundMe page set up to provide funds for the legal challenge, Ms James wrote: ‘Comrades, we are a group of Labour women who want to ensure all-women shortlists (AWS) remain reserved for females and that women’s representation in the party increases. We believe that the election of self-identifying trans women as women’s officers and their inclusion on all-women shortlists is reducing and undermining female representation in the Labour Party.

‘We are absolutely committed to trans people, as a marginalised group, living free from discrimination and violence: we need trans representatives, trans councillors and trans MPs in our party. We are socialists and we are egalitarians. However, trans representation must not happen at the expense of female candidates and we are furious that we are having to fight another battle for women’s representation, just 100 years after the suffragette victories.’

She added: ‘Self-identification does not define men as women, in law or in fact.’

She argued the party has to discussed or made any rule changes to allow trans women on all-women shortlists.