UK Labour warned over post-Brexit UKIP surge

Labour faces collapse across the north of England in the face of a post-Brexit Ukip surge unless it adopts an aggressive industrial policy backed by a low pound, a former party donor has warned.

Ukip MEP Steven Woolfe has seen his party eat into Labour support in the North of England. Gareth Fuller/PA Wire

Businessman John Mills, who donated hundreds of thousands of pounds to Labour until the election of Jeremy Corbyn as leader, said divisions within Labour were now “worse than the eighties”.

But he warned against any split in the party, saying Labour would face “armageddon” if rebellious MPs broke away in protest at Corbyn’s leadership.

“I think the situation now is worse than the eighties. It was pretty savage. There were lots of divisions,” Mills said.

But he cautioned against a split, saying: “You’re then going to split the left of centre vote.”