LABOUR'S plans to challenge Nicola Sturgeon in next year's Scottish election are in disarray after it scrapped the contest to select its candidate over concerns about its shortlist.

Party members across Glasgow have been told applications have re-opened for the selection of its contender for the city's South Side seat, just days after revelations of the frontrunner's business affairs and the withdrawal of another potential candidate from the race.

In an email bemoaning the shortlist of candidates for what will be Scotland's highest profile constituency contest next May, Labour's national executive said it did "not reflect the aspirations of the Labour Party in respect of diversity".

Hanif Raja, a Glasgow councillor since 2012 and failed candidate on previous occasions, had been expected to win the selection.

Mr Raja has the backing of the Sarwar dynasty and while it has been widely accepted that taking on the First Minister in her backyard was one of the toughest in Scotland, his selection has been pitched as Labour's attempt at a comeback in the area via the Asian community.

But in the past week it emerged one of his businesses is to be shut down over repeated failures to file annual accounts, while some in Labour have only become aware of a previous debt to the city council of £18,000 on the back of the revelations.

Mr Raja's main challenger for the nomination, another city councillor, Fariah Thomas, has also recently pulled out of the race.

In an email from the secretary of Labour's Glasgow branch, members have been told that hustings planned for Wednesday have scrapped and a new trawl is underway for fresh candidates.

It states: "It has been agreed that the shortlist of candidates does not reflect the aspirations of the Labour Party in respect of diversity.

"For this reason the Scottish Executive Committee has decided to re-open the application process with a new deadline of November 23.

"This will allow time to attract a more diverse, gender and ethnic mix for members to choose from."

The move means with just six months to go Labour has still to find candidates for three Glasgow constituencies, Shettleston, South Side and Kelvin, and has yet to decide on who will stand on the city's regional list.

One party source said it was hoped these could move forward at the weekend conference.

Another said: "The seat was Hanif's. No-one really expects to win it but some thought Hanif would be the type of candidate to start making inroads for the party.

"The next thing stories re-emerge about his business dealings, Fariah withdraws and we've a while new contest because the party doesn't think the shortlist offers the type of candidate it wants."

It is unclear whether Mr Raja, who was unavailable, will again seek the South Side nomination.

No-one from Scottish Labour was available.