LORD Blunkett has called on Labour MPs to create a new "leadership group" to form an alternative to Jeremy Corbyn in the wake of the party’s “dismal” performance in last week’s local elections.

The Labour peer claimed it was "increasingly clear that Jeremy’s leadership is going nowhere" and what was needed was a “renewed form of moderate New Labour”.

The former Home Secretary, who served in the Blair Government, argued that his party could only be successful if it created a “clear agenda based on a positive alternative rather than defining ourselves as being ‘anti’ everybody and everything”.

READ MORE: Sir John Curtice says Scotland "absolutely central" to whether Corbyn wins next General Election

He urged MPs and peers to “pick up the cudgel and begin formulating ideas and policies. From among them, a leadership group must be formed, from which a genuine alternative can emerge”.

His views about Labour’s local election results in England echoed those of some of his Labour colleagues.

Alistair Campbell, the former No 10 spin doctor, suggested last week’s performance showed the party was “a long way from where we need to be to be anywhere near getting back into Downing Street”.

Ian Murray, the Edinburgh MP and a long-standing critic of Mr Corbyn, stressed how given the political context of the poll – Brexit turmoil on the customs arrangements, the Windrush scandal, low growth in the economy – Labour’s local council results were an “unmitigated disaster”.

Chukka Umunna, the former Shadow Business Secretary, also expressed disappointment and called for a “proper post-mortem” on the party’s performance.

Labour gained 77 seats and won three councils but failed to secure other targets, especially in London.

Mr Corbyn said his party had put in a “solid” performance and was now well on the way to being able to form the next government.

READ MORE: Sir John Curtice says Scotland "absolutely central" to whether Corbyn wins next General Election

Barry Gardiner, the Shadow Trade Secretary, also defended Labour’s performance, saying: “Let’s face it we won 2,350 council seats, the Conservatives won 1,232 council seats. Now they lost 33 seats, we gained 77 seats. Would I have liked to have done better, you bet.”

He told ITV’s Peston on Sunday: “If you look at places like Wandsworth where if there had been 141 more votes in four wards we would have won that council. We needed 13 extra seats to win that council, we took seven extra seats and we could have done it with 141 more votes.

“How extraordinary that a prime minister goes running to Wandsworth to say: ‘Congratulations guys, you’ve been wonderful, you only lost seven seats to the Labour Party.’ I mean that is not a prime minister who sees the pinnacle of her success culminating in a general election victory next time, is it?” added the Scot.

READ MORE: Sir John Curtice says Scotland "absolutely central" to whether Corbyn wins next General Election

Laura Parker, National Co-ordinator of the pro-Corbyn Momentum campaign group, said: "The untold story of the night is Labour’s advance on last year’s snap election result. If this result were played out at a general election, the Tories would lose 12 parliamentary seats and be unable to form a government.”

A BBC projection of last Thursday’s result suggested in a general election both main parties would secure 35 per cent of the vote with Labour having three more seats in another hung parliament.