"Essentially, the majority of MPs will formally set up their own grouping under an alternative Labour banner…It is not a ‘we’re off to set up a new party,’ it is a ‘this is our party, we’re not leaving but our current situation is intolerable….The Parliamentary Labour Party would elect a leader which may or may not be Owen [Smith]. Other candidates could come into the frame at that point," a senior rebel Labour MP told the Telegraph.
According to the media outlet, the moderates are also planning to go through the courts to get the right to use Labour’s name and assets. They will also address John Bercow, the Commons Speaker and insist they should be called the official opposition if they have more MPs than Corbyn.
In June, Corbyn faced a motion of no confidence and saw half of the shadow cabinet resign in protest at what they claimed was his inability to lead the main opposition party after the Brexit referendum. Corbyn refused to resign and said he would take part in the party leadership election.