Labour has rediscovered its soul under new leader Jeremy Corbyn, his shadow chancellor has said.

John McDonnell argued that the veteran left-winger, with his "simple message" of opposing austerity, had "rehabilitated the Labour Party" during his leadership campaign.

He contrasted Labour's approach with that of the Conservatives, who he said had come into government with the "intention of completely dismantling the welfare state".

The shadow chancellor spoke out as he addressed a fringe meeting of the Scottish Labour Party conference in Perth.

He said after May's general election defeat - which saw Labour all but wiped out north of the border - there had been a "loss of hope" among some members.

Mr McDonnell said: "There was absolute desolation and despair after we lost that election, but afterwards what is interesting is that despair did not continue on."

Halfway through the leadership contest, as support for Mr Corbyn grew, he said "we began to realise the earth had begun to move".

He said: "Some people who had been turned off or disillusioned, or just saw no hope in the party, suddenly saw some hope, that there was a vista for the future."

He added: "I think we have discovered our soul again, that's what we have done under Jeremy."

Mr McDonnell went on to tell the audience: "The attraction was simple - we had a very simple message, it was anti-austerity, it was we don't have to live like this, austerity is not am economic necessity, it is a political choice."

He hit out at the economic policies of the Tories, saying: "This Government came into power with an intention of completely dismantling the welfare state, a scorched-earth policy of withdrawing all those benefits and all those reforms that we had campaigned for and destroying everything we hold good in terms of developing and maintaining a civilised community."

Under Mr Corbyn's leadership he said Labour was "committed as an anti-austerity party" adding: "That means in Parliament we oppose every cut.

"Up until now there's been a debate: Do we vote against this or do we not? How are we positioning ourselves? Are we going to be seen as irresponsible in terms of the handling of the economy?

"Now we're straightforward, we're a socialist party, we're anti-austerity, we stand up against the cuts, we stand up for the vulnerable.