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Canterbury MP Rosie Duffield has resigned from the Labour Party.
The MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.
She said the reason for leaving now is "the programme of policies you seem determined to stick to".
In her letter she mentioned the recent "treatment of Diane Abbott" - and "sleaze" allegations against the prime minister's top team.
Sir Keir Starmer has faced backlash after a Sky News report revealed he had received substantially more freebies than any other MP since becoming Labour leader.
Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality - a specific category in parliament's register of MPs' interests.
Ms Duffield, who has previously clashed with the prime minister on gender issues, accused the government of pursuing "cruel and unnecessary" policies.
She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the Prime Minister of "hypocrisy" over his acceptance of free gifts from donors.
"The sleaze, nepotism and apparent avarice are off the scale. I am so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party," she wrote.
"Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous.
"I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear."
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