I've changed tactics, not policy on economy - John McDonnell

John Martin McDonnell (a British Labour Party politician who has been the Member of Parliament for Hayes and Harlington since the 1997 general election and Shadow Chancellor of the Exchequer since September 2015) has insisted he changed his mind on tactics - not policy - after ditching the party's support for the government's fiscal charter. The shadow chancellor said Labour would oppose the bid to force future governments to run a budget surplus, having recently said it would back it.

The situation was branded a "shambles" after MPs were told about the U-turn at a stormy meeting at Westminster. Mr McDonnell said Labour would now draw up its own fiscal charter.

He said work on this would start "tomorrow", adding that Labour would create a "new economic paradigm" and was bringing in a "new politics".

"We want people to pay their way but not in terms of income tax. We think people are taxed enough - ordinary low and middle earners - it will be the corporations who should pay their way," he said.

Asked why he had U-turned on supporting Chancellor George Osborne's bill - which commits future governments to balance their budget each year - he said that a trip to meet those hit by the Redcar steelworks closure had prompted the change of mind. He said that as a result he did not want Labour associated "in any way" with the austerity policies of the government.

Mr McDonnell said he had changed his mind on parliamentary tactics but denied changing his economic policy. He said they had seen the bill as a "gimmick" so had intended to "ridicule it" by voting for it. He said Labour had also intended to try and amend the bill, but parliamentary processes had stopped them being able to.

Source: BBC