John McDonnell: Labour will match Osborne and live within our means

Exclusive: shadow chancellor says party will vote in favour of Tories' fiscal charter but will take radically different approach on cutting deficit

John McDonnell, the new shadow chancellor, will tell the Labour conference that Britain must always live within its means as he announces that the party will vote in favour of a new fiscal charter proposed by George Osborne.

In a sign of the new Labour leadership's determination to restore the party's credibility on the economy, McDonnell has told the Guardian that the party will manage the economy carefully.

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