Labour conference - LIVE: Leadership faces backlash after John McDonnell says new Brexit referendum should not include remain option

Benjamin Kentish

The Labour leadership is facing a backlash from party members and its own MPs after John McDonnell said any future Brexit referendum should not include the option of remaining in the EU.

The shadow chancellor said that, if Labour does eventually support another public vote, it would only be on "the terms of Brexit" and would not give the public the chance to reverse the result of the 2016 referendum.

The issue has dominated the party's annual conference in Liverpool. Last night, a tense six-hour meeting saw delegates agree a motion on Brexit that will be voted on later in the week.

The text commits the party to "support all options remaining on the table including campaigning for a public vote" but makes clear that Labour would prefer a general election.

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On another busy day, Mr McDonnell also announced plans to give workers a 10 per cent stake in their companies.

The shadow chancellor said his proposal for "inclusive ownerships funds" would make employees up to £500 a year better off.