McDonnell: 'borrow to invest'

Labour would "borrow to invest" in infrastructure, shadow chancellor John McDonnell has said.

"When borrowing costs are low, you need to borrow to invest", he told presenter Martha Kearney.

Asked if this would increase the deficit, he replied "in the short term". But added that it would lead to a "stable, growing and prosperous" economy in the longer term.

Mr McDonnell said George Osborne is "lacking credibility" on the economy for saying that "everything was rosy" and then "within weeks telling us we're on the edge of another crisis".