Corbyn and Sultana clash comes after months of fighting between the pair both jostling to be leader of populist left

The feud between Jeremy Corbyn and Zarah Sultana over the future of a left wing party took another twist as the two camps argued publicly over hundreds of thousands of pounds in donations.

Sultana on Monday offered to transfer £600,000 from a company which the party’s founders set up earlier this year, only to be rebuffed by allies of Corbyn who accused her of playing “political games” with supporters’ money.

The latest row comes after months of acrimonious fighting between the two former Labour MPs who are jostling to be the figurehead of what they hope will be a new force on the populist left. The tussle for power is likely to come to a head in the new year when the party holds a formal leadership contest.

The latest row centres on hundreds of thousands of pounds’ worth of donations and fees received by MOU Operations Ltd, a company set up earlier this year while the details of Your Party were being thrashed out.