LABOUR would target “corporate welfare” and not Britain’s poor and vulnerable in its battle to cancel the deficit, John McDonnell said yesterday.

In his first party conference speech as shadow chancellor, he put tax-dodging transnationals, rogue landlords and the wealthiest 1 per cent on notice for an “aggressive” deficit reduction drive by the next Labour government.

That would pay for a real living wage for every worker, houses for Britain’s 100,000 homeless families and investment in services, he said.