BRITISH families and businesses are paying for the Labour government’s damaging civil war that has led to a “cost of chaos” crisis, according to Stephen Flynn yesterday.

The SNP Westminster leader, who hopes to take a seat in Holyrood in May, made the comments after a week which saw Scottish Labour leader Anas Sarwar call for the resignation of his “friend” Sir Keir Starmer as prime minister.

His criticism comes as Sir Keir faced renewed questions on his choice to appoint Peter Mandelson — friend of paedophile sex-trafficker Jeffrey Epstein — as ambassador to Washington.

The scandal fuelled unease among Labour backbenchers that the party faces a rout in Scottish and Welsh parliamentary and English council elections in May, and poll after poll points to Sir Keir being the least popular prime minister in living memory.

Eyeing the carnage, Mr Flynn commented: “The cost of chaos under the Labour Party is growing and getting worse — Keir Starmer’s Labour Party are so caught up in their own civil war that they are completely ignoring Westminster’s never-ending cost-of-living crisis.

“When it comes to managing the economy, tackling Westminster’s cost-of-living crisis or even the basics of passing promised legislation, Keir Starmer’s distracted and divided Labour Party have blatantly downed tools.

“Another week of Westminster scandal has come with real costs and consequences — the pound plummeted, borrowing rates soared and even passing laws came to a standstill — people were promised ‘change’; Keir Starmer’s Labour Party has only delivered chaos.”

Mr Flynn said the public are “wise to the fact” that while Labour deals with “fighting among themselves, they will never fight for them” and warned their infighting is causing “economic and political paralysis.”

Speaking on the BBC’s Sunday Show, Mr Sarwar defended his decision to call for Sir Keir to quit, insisted he was not part of any “coup attempt” and that his statement had not undermined his own position.

He said: “Far too many people in politics think honesty is weakness.

“I think the opposite, and it’s why so many people in the public get turned off from politics. I think honesty is strength.”

Mr Sarwar went on to say that the Prime Minister would not be expected to speak at the upcoming Scottish Labour conference.

The UK government was contacted for comment.