McDonnell rejects claims Labour would leave people worse off

Only top 5% of earners would pay more tax under party, shadow chancellor says

John McDonnell has rejected suggestions that Labour's economic policy would increase prices and lower wages, arguing that structural changes would challenge "extreme inequality" and unstable investment.

Speaking after Labour's manifesto was unveiled on Thursday, the shadow chancellor said people would have much more control over their lives and the economy as a result of the party's plans to restore trade union rights and collective bargaining.

Related: Labour manifesto: what it says and what it means