Labour wants to create an "entrepreneurial state" which would support more than 20,000 new start-ups a year, John McDonnell has said.

The shadow chancellor said a Labour government would establish "strategic entrepreneurial hubs" across the country to provide support to new businesses at a local level at a cost of £25 million a year.

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During a visit to Building BloQs, a pay-as-you-go workshop in north London where designers and makers have shared access to expensive equipment, he said hubs would allow start-ups to flourish without major investment.

Speaking of the need to support business at all levels, he said: "In our view it's every level of the state, it isn't just at the national government level or regional government level, it's at the very local government level too.

"So what we're trying to say, to the Labour councils in particular, is they've got to become part of that entrepreneurial state at the local level."

Labour has launched a consultation on the idea, in its bid to tackle the "productivity crisis".

He added: "We don't want money to be the barrier to someone with talent, skill or a good idea and who wants to control their own destiny being prevented from starting up a small business of their own, staying the course and delivering growth.

"Labour has always been the party of makers and doers, we have a rich history of supporting those people who want to be designers, makers and innovators.

"And it's by helping to create the next generation of entrepreneurs that we will build the economy of the future."