Labour wants a 'revolution' for the UK economy, shadow chancellor John McDonnell has said.

Speaking to the BBC to mark 40 years since the election of Margaret Thatcher, Mr McDonnell said he saw similarities between now and the start of Mrs Thatcher's reign.

He said: "Things aren't working for people, so they're looking for change."

When asked if Labour's plans amounted to evolution or revolution, he said: "OK it will be a revolution. Transformative - because we are going to change society and that's what's demanded of us now.

"And do you know? I think most people accept that now. We'll do it by taking people with us. But it will be done on a very pragmatic basis.

"It is common sense socialism and the point about that first period of office when we go into government will be to lay the foundations for this transformation that we want.

"So we are in a hurry - because the issues are so desperate now."

Chief among Labour's plans are higher taxes on the rich and businesses, huge investment in public services and re-nationalisation of utilities.

Chief secretary to the Treasury, Liz Truss, agreed that the UK is on the verge of a major political shift, but rejected the idea of higher taxes. She said: "I think higher taxes just choke economic growth.

"Money that is taken in taxes is money that can't be invested in the wider economy. I look at countries like Japan and Korea which run very successful economies and the size of the state is lower.

"There's no reason we can't be more successful. Our challenge as a government is to raise economic growth. Getting growth up means more money is going into tax and public services."