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It later emerged that disgraced ex-Labour chief Corbyn had not agreed to join it - despite Sultana's claims
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Suspended Labour MP Zarah Sultana has announced her resignation from the party after more than a decade.
In a statement on Thursday evening, Sultana - who was suspended over voting against the Government on the two-child benefit cap in 2024 - confirmed she was out.
Declaring "Westminster is broken", she revealed she would also be co-leading a new party with fellow ex-Labour hardliner Jeremy Corbyn alongside other independent MPs.
Just minutes after her announcement, however, it was revealed that Jeremy Corbyn had not agreed to join the new party.
Corbyn was left "furious and bewildered" at how it was launched without consultation, according to The Times.
She also took a series of pot-shots at "grifter" Nigel Farage and the "failed" Labour Party in her statement.
In response, Farage jabbed: "If you thought Keir Starmer was having a bad week, it just got a whole lot worse."
The Coventry South MP - who until today had kept the words "Labour MP" in her social media "bio" despite her suspension last year - also swiped at the looming proscription of Palestine Action, and the Prime Minister's infamous "island of strangers" remarks.
In a statement on Thursday evening, Sultana confirmed she was out
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It also comes just days after landmark polling revealed a new Corbyn-led party would siphon support from both Labour and the Greens at an election.
Polling by More In Common revealed that said party would take in 10 per cent of the vote.
Labour's support would backslide by three percentage points, the Greens' by four, and the SNP's by one as a result.
But Reform would increase its polling lead by three points at the same time - with it, the Tories and Liberal Democrats remaining unaffected by the new hard-left bloc.
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Sultana's resignation comes just days after landmark polling revealed a new Corbyn-led party would siphon support from both Labour and the Greens at an election
PA
In full, Sultana's resignation letter reads: "Today, after 14 years, I'm resigning from the Labour Party.
"Jeremy Corbyn and I will co-lead the founding of a new party, with other Independent MPs, campaigners and activists across the country.
"Westminster is broken, but the real crisis is deeper. Just 50 families now own more wealth than half the UK population.
"Poverty is growing, inequality is obscene, and the two-party system offers nothing but managed decline and broken promises.
"A year ago, I was suspended by the Labour Party for voting to abolish the two-child benefit cap and lift 400,000 children out of poverty. I'd do it again. I voted against scrapping Winter Fuel Payments for pensioners. I'd do it again.
"Now, the Government wants to make disabled people suffer; they just can't decide how much.
"Meanwhile, a billionaire-backed grifter is leading the polls, because Labour has completely failed to improve people's lives.
'A billionaire-backed grifter is leading the polls,' Sultana fumed
GETTY"And across the political establishment, from Farage to Starmer, they smear people of conscience trying to stop a genocide in Gaza as terrorists.
"But the truth is clear: this Government is an active participant in genocide. And the British people oppose it.
"We are not going to take this any more. We're not an island of strangers; we're an island that's suffering. We need homes and lives we can actually afford, not rip-off bills we pay every month to a tiny elite bathing in cash.
"We need our money spent on public services, not forever wars.
"In 2029, the choice will be stark: socialism or barbarism. Billionaires already have three parties fighting for them. It's time the rest of us had one."