He told the BBC the leadership had failed to tackle anti-Semitism and had turned the party into a "narrow sect".

But the MP for Dudley North said he had no plans to join the new Independent Group of former Labour and Tory MPs.

Labour deputy leader Tom Watson said it was a "serious blow". The party called on Mr Austin to face a by-election.

A spokesman expressed regret about his decision but said: "He was elected as a Labour MP and so the democratic thing is to resign his seat and let the people of Dudley decide who should represent them."

News of Mr Austin's resignation was first broken by the Express & Star newspaper.

The MP told BBC West Midlands minutes later that his "work for the people in this community is going to carry on as it always has", and that he had been an open critic of Mr Corbyn when he was elected in 2017.

An MP since 2005, Mr Austin said: "This is the most difficult decision I've ever had to take but I've taken it because I've become ashamed of the Labour Party.

"I grew up listening to my dad, who was a refugee from the Holocaust, teaching me about the evils of hatred and prejudice.

"One of the main reasons I joined the Labour Party as a teenager here in Dudley more than 35 years ago was to fight racism and I could never have believed I would be leaving the Labour party because of racism too."

Mr Watson, who recently said he "no longer recognises" the party he was elected deputy leader of in 2015, said he was "deeply saddened" by his close friend's decision to leave.

"I didn't want him to go, not just because he is a friend but because Labour needs people of his experience, calibre and passion if we are to win," he added.

Khalid Mahmood, Labour MP for Birmingham Perry Barr, called Mr Austin's decision to quit the party "very sad".

But he said Labour under Mr Corbyn was "doing its best" on anti-Semitism, and was operating a "zero-tolerance" policy on the issue.

"On that basis, we should move forward, together," he said.

BBC