The High Court ruled in their favour today.
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A decision to allow the excluded members to vote was seen as more likely to benefit the incumbent, Mr Corbyn, in the increasingly bad-tempered leadership race. While Smith has the backing of a majority of the party’s lawmakers, Corbyn retains strong support among grassroots members.
She told BBC Radio 4’s World At One: “Ultimately we have to have a much more healthy conversation around reselection, if not mandatory reselection”.
It came as Mr Watson suggested “Trots” are attempting to use Labour as a “vehicle for revolutionary socialism”, are not “remotely interested in wining elections” and do not have the “best interests of the Labour Party at heart”. The Labour Party should accept the result and welcome the fact that 130,000 people have given up their time and money to join it in the last six months alone.
John McDonnell, who chairs Corbyn’s leadership campaign, said he was “appalled” at the prospect of the party challenging the ruling.
“If we stick with Corbyn we will be out of power for 30 years. It fuels a climate of distrust and I don’t think that that is where we should be”.
Meanwhile, Mr Smith has stressed “of course it’s possible” that he could still win the contest, but he called for the timetable of the election to be changed.
“My heart leads towards Corbyn”. Referring to the relevant clauses in Labour’s constitution, which refer only to a “challenger” requiring nominations, Foskett said they “reveal a natural and ordinary meaning that seems to me to be entirely clear”. I am calling on all the other political leaders to follow suit until the system can be overhauled.
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While another senior Labour MP said: “There is a massive disconnect between Jeremy Corbyn and the electorate including a big part of the Labour electorate”. “This has gifted Theresa May an extended honeymoon period when the opposition should be united in holding the new prime minister to account”.
He also urged Mr Smith to follow suit.
He also outlined plans for “a new industrial revolution” to make the United Kingdom into “the workshop of the world”.
He will argue governments have allowed financial services to flourish at the expense of manufacturing, and there has been too much complacency about low-paid jobs.
The case was bought by five Labour members but the ruling means more than 125,000 might now become eligible to take part.
Mr Corbyn, who was due to address a rally in Bristol this evening, has not ruled out trying to stay on as leader even if Labour loses the 2020 General Election.
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A Labour Party sportsperson said: “It is right that the Labour Party seeks to defend vigorously decisions of the National Executive Committee in this matter, and we will now study this judgement carefully”. “They will decide, one way or another”.
