Labour’s former Shadow Chief Secretary to the Treasury has revealed she resigned from the Shadow Cabinet because she opposes Jeremy Corbyn’s economic policies.
Shabana Mahmood, Labour MP for Ladywood, said she and Mr Corbyn “strongly disagree” about the best way to run the economy.
She announced over the weekend that she was resigning from her post, and is one of a number of senior Labour figures who have refused to serve in Mr Corbyn’s front bench team.
Mr Corbyn, who was chosen as Labour’s new leader in a landslide victory over rival candidates, set out proposals during the leadership election to order the Bank of England to print money to spend on housing, energy, transport and digital projects, a policy known as “quantitative easing for people”.
Another option would be to raise an extra £93 billion in tax from businesses, he said.
Ms Mahmood said she backed many of Mr Corbyn’s policies but could not work with him on economic issues.
She said: “The Labour Party is and always has been a broad church.
“Jeremy and I have a shared commitment to equality and social justice and we have campaigned on many of the same issues - such as Palestinian rights, and the refugee crisis.
“On a number of important economic issues however we strongly disagree which is why in this case it is best for the Labour Party and the new team that I have stepped aside.”
Labour party leader Jeremy Corbyn leaves his home in Islington, north London
Speaking as MPs debated Government plans to make it restrict trade unions, including making it harder to go on strike, she said: “The considerable battle against Tory injustices goes on for all of us starting with the Trade Union bill.”
Ms Mahmood became an MP in 2010. She was seen as a rising star within the party and at the age of 34 has been a Shadow Home Affairs Minister, Shadow Business Minister and Shadow Treasury Minister before becoming Shadow Chief Secretary, the second-in-command to the Shadow Chancellor.
It emerged that at one point Mr Corbyn's team discussed offering a Shadow Cabinet role to Birmingham Erdington MP Jack Dromey, who was considered for the post of Shadow Defence Secretary. However, the offer was never made.
Erdington Labour MP Jack Dromey.
MP Chris Bryant, who is the new Shadow Leader of the House in Mr Corbyn's team, revealed he was actually offered the Defence post - but turned it down.
Mr Corbyn opposes the replacement of the Trident nuclear weapons system and has questioned the role of Nato.
Mr Bryant told the BBC: "It's difficult and I think it is going to be a bit of a bumpy ride because there are issues on which - they are not light issues - I profoundly disagree with him, like on Nato, Russia and things like that."
The new Shadow Communities and Local Government Secretary is West Yorkshire MP Jon Trickett, who will have the task of drawing up alternative proposals to Conservative plans for regional mayors across the country.
Speaking in the House of Commons he told Government Ministers: "We are ready, willing and able to take the fight to your frontbench and eventually to drive you out of office."
Leader of the Opposition: Jeremy Corbyn
Deputy leader, party chair and shadow minister for the Cabinet Office: Tom Watson
Shadow chancellor: John McDonnell
Shadow home secretary: Andy Burnham
Shadow foreign secretary: Hilary Benn
Shadow health secretary: Heidi Alexander
Chief whip: Rosie Winterton
Lords Chief Whip: Lord Bassam of Brighton
Shadow leader of the House of Lords: Baroness Smith of Basildon
Shadow leader of the House of Commons: Chris Bryant
Shadow Attorney General: Catherine McKinnell
Shadow chief secretary to the Treasury: Seema Malhotra
Shadow business secretary and first secretary of state: Angela Eagle
Shadow justice secretary: Lord Falconer
Shadow education secretary: Lucy Powell
Shadow secretary of state for International Development: Diane Abbott
Shadow secretary for Northern Ireland: Vernon Coaker
Shadow secretary for Wales: Nia Griffith
Shadow secretary for Scotland: Ian Murray
Shadow defence secretary: Maria Eagle
Shadow work and pensions secretary: Owen Smith
Shadow energy secretary: Lisa Nandy
Shadow secretary of state for environment: Kerry McCarthy
Shadow communities secretary: Jon Trickett
Shadow culture secretary: Michael Dugher
Shadow secretary of state for transport: Lilian Greenwood
Shadow secretary for women and equalities: Kate Green
Shadow minister for young people and voter registration: Gloria De Piero
Shadow minister for mental health: Luciana Berger
Shadow minister without Portfolio: Jonathan Ashworth
Shadow minister for housing: John Healey