Labour will end benefits freeze if it wins power, shadow chancellor John McDonnell says

'When we get into the next election we'll set out our manifesto and we'll set out a costed programme like I did last year as well,' shadow chancellor says

The shadow chancellor was speaking on ITV's Peston. (Rex)

Labour will end the working-age benefits freeze if it wins power, shadow chancellor John McDonnell has said.

The shadow chancellor said the party would set out how it will pay for the move ahead of the next general election.

“We will lift the freeze and we will make sure that from then-on people get a proper cost-of-living benefit on the freeze themselves,” Mr McDonnell told ITV’s Peston. ”What we said is that we will lift the freeze and that from then-on people will get proper cost-of-living increases. When we get into the next election we’ll set out our manifesto and we’ll set out a costed programme like I did last year as well.”

Labour leader Jeremy Corbyn criticised Theresa May at Prime Minister’s Question Time earlier this week for choosing a “tax cut for higher earners” in the Budget rather than ending the benefit freeze. Then Tory chancellor George Osborne froze most working-age benefits in 2016.

Mr McDonnell’s comments came as it emerged that his own party’s MPs are planning to revolt against his support and that of Mr Corbyn, for a Conservative tax cut that will mainly benefit top earners.

Mr Corbyn has been warned that the move is “unacceptable” to many of his backbenchers ahead of a vote late on Thursday.

The leadership will order its MPs to abstain in the vote, but Lisa Nandy, a respected former shadow minister, said many of her colleagues viewed such a tax cut for the rich as “immoral”.

Yvette Cooper, David Lammy and Alison McGovern are among other Labour MPs who have criticised the move – a hike in the threshold before the 40p income tax rate kicks in to £50,000.

Mr McDonnell has said he will not oppose the change because Labour is “not going to take money out of people’s pockets” and argued that party will only ask the top 5 per cent of earners to pay more, under planned increases in income tax rates that would kick in at £80,000.

The clash sets up the extraordinary prospect of Labour MPs rebelling against Mr Corbyn and Mr McDonnell for failing to be radical enough on tax-and-spend.