The name seems almost quaintly old-fashioned and more in keeping with left-wing politics of an earlier age. But the Independent Working Class Association is continually stealing votes from Labour in local elections and keen observers of the political scene are beginning to warn that it is a force to be reckoned with.

Formed four years ago, it already has its first councillor, voted onto Oxford City Council last year.

Now it is fielding Islington mother-of-two Lorna Reid, 39, an advice worker from Highbury estate, at the London Mayoral elections in June.

Two of the party's policies have already stirred up controversy. It believes in isolating trouble-makers on housing estates, which has been interpreted as a form of community "vigilanteism".

And it has campaigned against multiculturalism, which it claims merely encourages segregation.

Proof that the party is gaining support is indicated by the fact that within a few months and without the benefit of media publicity it was able to raise £20,000 to fight the Mayoral elections. An appeal on its website resulted in dozens of fundraising events being organised.

In Islington it has already scored some remarkable political successes for a movement so relatively young. Standing for the first time in the increasingly gentrified ward of Clerkenwell in 2002 it came second to the Lib Dems, knocking Labour into third place.

And if that was not humilitating enough, it did it again last year in Bunhill, former home of New Labour guru Peter Mandelson. There the party got 22 per cent of the vote, finishing 15 votes behind Labour.

That is despite a big-spending Labour campaign involving Islington MP's Jeremy Corbyn and Chris Smith.

The Independent Working Class Association also managed to embarrass Labour by comparing what the minority Labour group says in Islington with the actions of the ruling Labour group in Camden.

Take the recent Arms Length Management Organisation (Almo) debate over the future of Council housing. The Lib Dems in Islington went all out to persuade tenants to vote for an Almo while Labour issued leaflets telling tenants to "vote No to keep your housing local and safe". But in neighbouring Camden, where Labour is in power and the Lib Dems in opposition, the roles were reversed - despite Camden's Almo scheme being similar to the one in Islington.

In Camden, Labour told tenants they had nothing to worry about and urged them to vote Yes. And, incidentally, the Camden Lib Dems did their best to scupper the scheme.

The Independent Working Class Association, according to Ms Reid, is mainly made up of former Labour members and others fed up with mainstream politics.

On claims that their policies would support vigilanteism, she said: "I must make it quite clear I don't believe in violence and coercion. "We do however believe that if the majority of people are fed up with a drug addict or a neighbour from hell then we have a right to isolate these people and if possible drive them away."

As for multiculturalism, she said that New Labour was pushing ahead with plans for more and more state-funded religious schools, which in themselves create segregation and could cause racism.

"In many council elections voters have abandoned a political process that has abandoned them," she said.

"Out-of-touch politicians from the three main parties battle for the middle ground and the votes of middle England because they believe, in the words of the prime minister, that 'we are all middle class now'.

"But child and pensioner poverty in the capital is among the worst in Europe. According to the government’s own figures I live in one of the poorest and most deprived boroughs in London."

"Yet life here is portrayed in the national media as the home of luxury lofts and celebrity dinner parties."

She argues that left-wing organisations like the Socialist Workers' Party and the Communist Party are no longer relevant today. "They are often opportunist and pick and chose what battles to fight," she said. "The old left never had real political victories and was only interested in recruitment and paper sales. "Council tenants live like dogs in sub-standard housing. We want more than poverty pay, and we don't want to have to pay £1 to go two stops on the buses."

She believes most working class Londoners are dismayed at the lack of progress on issues such as increasing anti-social and drug-related crime, the growing housing crisis, mounting council tax bills, the "farce" of privately-run public transport and the closure and privatisation of public buildings.

Gary O'Shea, a founder member of the party, is an unemployed forklift driver and organiser of the Islington branch, which has fewer than 30 activists.

He said: "Some people will wonder why it took us so long to get to the stage we are at today. The fact of the matter is that, even though two years prior to New Labour being elected, we could see a huge gap in the market to Labour's left, the time was not ripe nor were we in a position to exploit it.

"This was mainly becuse after almost 20 years of Thatcherism, many wanted to give New Labour a chance. Well, they've had that chance."