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Owen Smith is running to be Labour leader in a dramatic new development in the party's internal battle.

The ex-shadow work and pensions secretary announced his bid today after claiming Jeremy Corbyn "rejected" a plan to stop a damaging party split.

He declared: "MPs are going to get the chance to hear about how I will be a radical and credible leader of the Labour party and how I can heal our party. People in this country in the Labour party want that."

Mr Smith's bid will pit him against both Jeremy Corbyn and challenger Angela Eagle after the current leader won a bitter battle to be on the ballot.

In a vote by 32 people that will make British political history, Labour's ruling National Executive Committee (NEC) said Mr Corbyn can fight without getting 51 nominations from MPs and MEPs.

NEC delegates - including Mr Corbyn himself - voted 18-14 in his favour, clearing the path for what critics fear will be a landslide victory.

But announcing his bid on BBC Radio 4's Today programme, Mr Smith said he was not prepared to let the party split in two.

(Image: Getty Images)

Mr Smith said Mr Corbyn was a "good man with great Labour values" but was "not a leader who can lead us into an election".

He added: "Working people in this country cannot afford to have a day like today where the Tories are popping champagne corks and celebrating their coronation and the prospect of a Labour government feels so distant.

"I met with [Jeremy] three times in the last 10 days saying there are lots of ways you can compromise.

"I put to him a series of different alternatives to heal the party. As recently as two days ago these have been rejected."

Mr Smith claimed Shadow Chancellor John McDonnell "is part of the problem in the Labour party" after he branded "plotters" as "f***ing useless" at a rally last night.

"That's not language he should be using as shadow chancellor and it's not language I would be using," he added.

He said he warned Mr McDonnell the party could split in two, but "he shrugged his shoulders and said to me 'if that's what it takes'".

Despite announcing his bid and resigning from the front bench, Mr Smith claimed fellow MPs' behaviour was "destructive" adding: "I was not part of any plot or coup against Jeremy Corbyn".

(Image: Jack Taylor/ Getty Images)

And he said: "I will never split the Labour party. I will be Labour 'til the day I die."

Mr Smith, who joined Parliament in 2010, also said he would have voted against the Iraq War if he was an MP in 2003 - setting him apart from Angela Eagle.

But despite wanting "a multilateral disarmed world" he said the reality of global threats mean he will vote to renew Trident next week.

Both Ms Eagle and Mr Smith must get 51 nominations each.

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The BBC reported Mr Smith agreed with putting Mr Corbyn on the ballot and he was planning to speak to Labour members in his south Wales constituency about his bid.

Mr Smith's allies said he could be a unity candidate to unite the party as Ms Eagle faces hostility from some left-wingers over her 2003 vote for the Iraq War.

Challenged over her vote by the BBC yesterday she said: "Hang on a minute, you're not going to repeat a Corbynista meme that's going round Twitter are you?"

She added: "I voted to double the amount of money we spent on the health service.

"On Trident I think the country needs to have proper defence.

(Image: Getty)

"I voted for the minimum wage - I stayed up all night to make sure this country had a national minimum wage when the Conservatives were voting against it and saying it was a job destroyer."

NEC members were locked in a debate last night lasting nearly six hours - amid threats of court action - after warring factions disputed the rules on Mr Corbyn's position.

Their decision leaves the entire say on who will lead Labour to around 400,000 party members.

More than 100,000 who joined after the cut-off date of January 12 - many of them thought to be Corbyn backers - are not currently eligible to vote.

(Image: Splash)

But a two-day window will be opened for people to become 'registered supporters' to vote for a £25 fee.

After posing for selfies with fans last night Mr Corbyn said he was "delighted" - adding: "We will be campaigning on all the things that matter.

"The inequality and poverty that exist in this country. The need to end the privatisation of our NHS. The need to give hope and opportunity to all the people in this country.

"That will strengthen our party in order to defeat this Tory government and bring in a government that works for the people."

How the Labour leadership race came about

June 24

Mr Corbyn is urged to reconsider his position as Labour leader as his party is plunged into bitter recrimination after voters backed Brexit.

Labour MP Angela Smith insists Mr Corbyn must accept his share of the responsibility at the forefront of the Labour "In" campaign, with traditional voters for the party turning their backs on appeals to vote Remain.

Former Labour minister and EU commissioner Lord Mandelson also says the referendum campaign shows Mr Corbyn "can't cut it" as leader. Mr Corbyn insists he will be carrying on and "making the case for unity".

(Image: Getty)

June 26

11 members of the shadow cabinet quit Mr Corbyn's top team in despair at his ability to win a general election. He vows to battle the co-ordinated attempt to topple him as he insists he will not "betray" the trust of the party members who elected him. Chris Bryant warns Mr Corbyn risks going down in history as "the man who broke the Labour Party" unless he stands aside. Further resignations follow.

(Image: Splash)

June 27

Mr Corbyn's grip on the Labour leadership looks increasingly weak as Angela Eagle becomes the most senior member of his shadow cabinet to quit.

Ms Eagle, the shadow first secretary of state who deputises for Mr Corbyn at Prime Minister's Questions, said "we need a leader who can unite rather than divide the Labour Party".

Mr Corbyn tells MPs that the country is divided and will not thank either party for "indulging in internal factioning manoeuvring at this time".

(Image: Reuters)

June 28

A defiant Mr Corbyn said he will not "betray" his supporters by resigning following an overwhelming vote of no confidence by MPs.

The Labour leader said the vote by the Parliamentary Labour Party had no "constitutional legitimacy" under party rules. Although there is no official announcement of the voting figures, sources said it is 172 to 40 in support of the motion with four spoilt papers.

(Image: REX)

June 29

David Cameron calls for Mr Corbyn to stand down in the national interest saying: "For heaven's sake man, go." Former Labour leader Ed Miliband also calls on Mr Corbyn to quit, saying his position is "untenable". But unions say Mr Corbyn is the democratically-elected leader of Labour and his position should not be challenged except through the proper democratic procedures provided for in the party's constitution.

(Image: REX)

June 30

Mr Corbyn defiantly continues to cling on as Labour leader in the face of a Jewish backlash, fresh calls to quit and another frontbench resignation. Chief Rabbi Ephraim Mirvis leads condemnation of Mr Corbyn after he drew comparisons between Israel and Islamic State (IS).

The Opposition leader is also accused of creating a party that is not safe for Jews by one of his MPs.

(Image: Christopher Furlong/Getty Images)

July 1

Mr Corbyn is likely to face a leadership challenge in "the next few days", his ally and shadow chancellor John McDonnell said.

(Image: Reuters)

July 2

Mr Corbyn's beleaguered leadership is facing yet more pressure as polling indicates more than half the members of Britain's biggest trade union want him to quit.

Some 49% of people signed up to Unite want the Labour leader to go immediately while a further 10% believe he should resign before the next general election, according to a poll seen by the Guardian.

Among Labour voters, 61% said he is doing badly in the job, the YouGov Election Data survey found. Meanwhile, Angela Eagle renews her call for Mr Corbyn to quit for the good of the "party and the country".

The former shadow business secretary is poised to mount a challenge to Mr Corbyn, with ex-shadow work and pensions secretary Owen Smith also believed to be considering a bid.

(Image: Liverpool Echo)

July 9

Mr Corbyn pleads for the party to "come together" as the crisis around his leadership deepens. Deputy Labour leader Tom Watson pulls out of peace talks with the trade unions aimed at breaking the deadlock between Mr Corbyn and his MPs because "there is no realistic prospect of reaching a compromise" while the leader remained determined to stay in place.

Mr Watson's decision to pull the plug on the talks makes the prospect of a leadership challenge more likely.

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July 10

Mr Corbyn insists he will fight for the Labour leadership and said he is "disappointed" that Angela Eagle is poised to challenge him. The Labour leader urged Ms Eagle to "think for a moment" about her actions.

On BBC One's Andrew Marr Show Mr Corbyn says he has "reached out in a way no other leader has" in an attempt to unite all parts of the party. Ms Eagle insists she can save Labour as she prepares to formally launch a leadership contest with the potential to rip the party apart.

(Image: Getty)

July 11

Ms Eagle insists she has not embarked on a political "suicide mission" as she launches her bid to topple Mr Corbyn. She said she could make Labour electable again after the "howl of pain" expressed in the Brexit vote.

July 12

Mr Corbyn said it is "extremely concerning" that the constituency office of Angela Eagle has been attacked and that "other MPs are receiving abuse and threats", adding that he has received death threats this week.

Later, it emerges that Mr Corbyn will automatically be included on the ballot in Labour's leadership contest following a vote by the ruling National Executive Committee. He says he is "delighted" and pledges to campaign "on all the things that matter".