Jeremy Corbyn’s new party has imploded with an MP quitting over what he claimed was “veiled prejudice” against Muslim men. It comes just two weeks before the first Your Party conference in Liverpool.

Adnan Hussain, MP for Blackburn and a member of the Left-wing party’s steering committee, withdrew on Thursday (November 13). He claimed that Your Party’s culture had become “dominated by persistent infighting” and cited “very serious and damaging internal disputes” for his decision. On Friday, Hussain said he was “deeply troubled by the way certain figures within the steering process, particularly Muslim men, have been spoken about and treated”.

As reported by The Times, he added: “At times, the rhetoric used has been disturbingly similar to the very political forces the left claims to oppose. I witnessed insinuations about capability, dismissive attitudes and language that carried, at the very least, veiled prejudice.”

Your Party leaders, Jeremy Corbyn and Zarah Sultana, have been at the centre of a public argument over hundreds of thousands of pounds in donations. The row comes as the former Labour MPs continue to jostle to become the figurehead of the party.

Corbyn and four other Independence Alliance MPs, including Hussain, said the money donated to the party was “beyond reach”. It was reported that Sultana offered to transfer £600,000 from a company the party’s founders set up earlier this year.

However, Corbyn’s allies are said to have rebuffed the offer and accused Sultana of playing “political games” with the money of supporters. It has since been confirmed that the first £200,000 has been sent, with a spokesperson for Sultana confirming she was “working to transfer all funds and data to Your Party”.

A statement from Corbyn, Shockat Adam, Hussain, Ayoub Khan and Iqbal Mohamed said: “Your Party’s founding purpose is to stand for the many against the few who hold the wealth and power in our country. A dedicated team of volunteers has been working on a shoestring budget to deliver a founding conference at the end of the month.

“Their efforts are heroic, but without funding, Your Party’s capacity has been severely restricted. Hundreds of thousands of pounds were donated to the party by supporters in good faith, but have since remained beyond its reach. This has been extremely frustrating and disheartening.”

They added that the “small portion” of funds sent to the party on Thursday was “insufficient”. The group continued: “We will continue to pursue the immediate transfer of all the money that was donated by supporters to get a new party off the ground, alongside a resolution to outstanding legal issues.”

Meanwhile, a spokeswoman for Sultana said: “While briefings of possible liabilities are overblown and misguided at best, she is still legally responsible for ensuring the company is properly run, including arranging for refunds requested and ensuring any other liabilities are settled. All remaining funds will be transferred to Your Party once the company’s costs and liabilities are settled in full.”