The West London Synagogue rabbi praised Lord Mitchell, who resigned from Labour in September 2016, saying he “was absolutely right to do so".
“Others are saying they’re in there and staying to fight it. I understand that, but at the moment they’re not winning. I think there’s a point where you’re not winning where you have to say 'forgive me' and leave,” she said.
She added she hoped the antisemitism row would stop Labour getting elected.
“It certainly stopped them in some local authorities,” she said.
Baroness Neuberger, whose mother came to Britain as a refugee from the Nazis, said there was still a future for Jews in Britain, despite Labour's problem with antisemitism.
Watch Baroness Neuberger speak at the Bank of England's One Bank Flagship seminar here.