The Labour Party plans to cut up to a quarter of its staff after finding itself in a dire financial situation brought on by a mass exodus of members and a slew of anti-Semitism cases.

David Evans, Labour’s general secretary, met with its ruling National Executive Committee (NEC) on Tuesday to present the outcome of his major structural review of the party, including a recommendation that up to 90 people are made redundant.

Labour has apologised to its staff but says that the cuts are required to keep the party afloat and able to fight the next general election, which many believe could come next year.

Staff have been offered voluntary redundancy with a severance package of three weeks’ pay for each year they have worked there.

The website LabourList reported that Mr Evans told the NEC: “We don’t have any money”.

The party’s finances have deteriorated since Sir Keir Starmer took office as Labour leader, with members leaving in droves and officials fighting a string of costly legal battles and running investigations into members who have been accused of anti-Semitism.

Figures published late last year showed the party had lost around 10 per cent of its members in the seven months after Sir Keir took over from Jeremy Corbyn as leader.

Tuesday’s NEC meeting also saw officials proscribe four far-Left Labour groups, which could see around 1,000 members automatically ejected from the party.

Busy day: Piers Corbyn, brother of former Labour leader Jeremy Corbyn, during a protest against Government Covid laws, before his attention turned to Labour headquarters

Credit: Martin Pope/Getty Images

Membership of Labour Against the Witchhunt, Socialist Appeal, Resist, and the Labour in Exile Network is now incompatible with membership of the party itself, the committee decided.

Several of the groups have protested against what they say are politically-motivated expulsions of members who have been accused of anti-Semitism.

Hard-Left demonstrators, including Mr Corbyn’s brother Piers, gathered outside the party’s headquarters in Westminster to protest against the ban.