He issued an “unreserved” apology for the “deeply offensive, ignorant and false” remarks and Labour initially stood by him, saying he had “fallen for a conspiracy theory”.
A report in the Daily Mail on Monday evening claimed Mr Ali blamed “people in the media from certain Jewish quarters” for fuelling criticism of a pro-Palestinian Labour MP, as well as claiming Israel planned to “get rid of [Palestinians] from Gaza” and “grab” some of the land.
A party spokesperson said: “Following new information about further comments made by Azhar Ali coming to light today, the Labour Party has withdrawn its support for Azhar Ali as our candidate in the Rochdale by-election.”
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Labour acknowledged the circumstances were “highly unusual”.
The spokesperson added: “Given that nominations have now closed, Azhar Ali cannot be replaced as the candidate.”
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8:59
‘Tremendous task to rebuild trust’
Why can’t Labour replace Ali?
According to Electoral Commission rules, a candidate can only pull out of a race if they submit a withdrawal notice by the deadline for withdrawals (which is by 4pm, 19 working days before the poll).
The deadline for the Rochdale by-election passed on 2 February.
That means Mr Ali will appear on the ballot paper as the Labour candidate when voters go to the polls.
What happens if Ali wins?
However, if Mr Ali wins the by-election, he will not become a Labour MP. Instead, he will sit as an independent.
That’s because by withdrawing support, Labour has effectively removed the whip were he to be selected as the constituency’s next MP.
Having the whip withdrawn is a severe punishment which means you are kicked out of the parliamentary party.
Both of those cases were to do with rows over antisemitism, which Sir Keir Starmer has promised to tear out of his party following the controversies that dogged the Corbyn era.
Why is there a by-election and who else is standing?
The decision to withdraw backing for Mr Ali will come as a blow to Labour, which had hoped to retain the seat following the death last month of veteran sitting MP Sir Tony Lloyd.
It also means Labour will need to find a new candidate to contest the seat at the upcoming general election.
Also running in Rochdale are former Labour MP Simon Danczuk, now the Reform Party candidate, and George Galloway, of the Workers Party of Britain, who is campaigning against Labour’s stance on Gaza.
What questions remain for Sir Keir Starmer?
The party leadership is being pressed on why Mr Ali was not immediately suspended after the initial comments emerged.
Labour recently suspended MP Kate Osamor after she appeared to say the Gaza war should be remembered as genocide on Holocaust Memorial Day.
And Sir Keir has repeatedly promised to tear antisemitism out “by its roots” in Labour.
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7:09
‘I ‘will rip antisemitism out’
A spokesperson for the Campaign Against Antisemitism said that rather than appearing as a principled decision, Labour’s withdrawal of support “looks as expedient as the failed attempt to defend him”.
Meanwhile, Martin Forde KC, who led a review into the party’s cultureunder Mr Corbyn, said Labour MPs feel there has been a “disparity in treatment” of allegations of antisemitism within the party.
He told BBC Radio 4’s Today programme: “One does have to question how such individuals are selected in the first place, and also the disparity in treatment, because one of the things that concerned us when we talked about weaponisation was certainly the perception that antisemitism was along factional lines.”
How are candidates selected?
Mr Ali, the leader of Lancashire County Council’s Labour group, was chosen by local party members last month after making it on to the candidate shortlist with two other people – political journalist Paul Waugh and Wigan councillor Nazia Rehman.
Lord Mann, the government’s antisemitism adviser and a former Labour MP, told Sky News the filters in place during Labour’s selection process were “clearly not good enough” and Sir Keir will likely be “fuming”.
He added that “heads may roll” over the decision to shortlist Mr Ali, and the move to withdraw support was “bold and brave”.
He said this has “never happened before” in a by-election, adding: “I think the Jewish community, as it reflects on this, will take great comfort in the fact that Keir Starmer has been prepared to do it. It’s certainly a bold move.”
Sir Keir Starmer has insisted the “vast majority of farmers” will not be affected by changes to Inheritance Tax (IHT) ahead of a protest outside parliament on Tuesday.
It follows Chancellor Rachel Reeves announcing a 20% inheritance tax that will apply to farms worth more than £1m from April 2026, where they were previously exempt.
But the prime minister looked to quell fears as he resisted calls to change course.
Speaking from the G20 summit in Brazil, he said: “If you take a typical case of a couple wanting to pass a family farm down to one of their children, which would be a very typical example, with all of the thresholds in place, that’s £3m before any inheritance tax is paid.”
The comments come as thousands of farmers, including celebrity farmer Jeremy Clarkson, are due to descend on Whitehall on Tuesday to protest the change.
And 1,800 more will take part in a “mass lobby” where members of the National Farmers’ Union (NFU) will meet their MPs in parliament to urge them to ask Ms Reeves to reconsider the policy.
Speaking to broadcasters, Sir Keir insisted the government is supportive of farmers, pointing to a £5bn investment announced for them in the budget.
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He said: “I’m confident that the vast majority of farms and farmers will not be affected at all by that aspect of the budget.
“They will be affected by the £5bn that we’re putting into farming. And I’m very happy to work with farmers on that.”
Sir Keir’s spokesman made a similar argument earlier on Monday, saying the government expects 73% of farms to not be affected by the change.
Environment, Farming and Rural Affairs Secretary Steve Reed said only about 500 out of the UK’s 209,000 farms would be affected, according to Treasury calculations.
However, that number has been questioned by several farming groups and the Conservatives.
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2:28
Farming industry is feeling ‘betrayed’ – NFU boss
Government figures ‘misleading’
The NFU said the real number is about two-thirds, with its president Tom Bradshaw calling the government’s figures “misleading” and accusing it of not understanding the sector.
The Country Land and Business Association (CLA) said the policy could affect 70,000 farms.
Conservative shadow farming minister Robbie Moore accused the government last week of “regurgitating” figures that represent “past claimants of agricultural property relief, not combined with business property relief” because he said the Treasury does not have that data.
Agricultural property relief (APR) currently provides farmers 100% relief from paying inheritance tax on agricultural land or pasture used for rearing livestock or fish, and can include woodland and buildings, such as farmhouses, if they are necessary for that land to function.
Farmers can also claim business property relief (BPR), providing 50% or 100% relief on assets used by a trading business, which for farmers could include land, buildings, plant or machinery used by the business, farm shops and holiday cottages.
APR and BPR can often apply to the same asset, especially farmed land, but APR should be the priority, however BPR can be claimed in addition if APR does not cover the full value (e.g. if the land has development value above its agricultural value).
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Mr Moore said the Department for the Environment, Farming and Rural Affairs (DEFRA) and the Treasury have disagreed on how many farms will be impacted “by as much as 40%” due to the lack of data on farmers using BPR.
Lib Dem MP Tim Farron said last week1,400 farmers in Cumbria, where he is an MP, will be affected and will not be able to afford to pay the tax as many are on less than the minimum wage despite being asset rich.