The European Union's support for austerity and "failed neoliberal policies" paved the way for the Brexit vote, Jeremy Corbyn said as he called for reform across the continent.

The Labour leader said a new Europe must be created "inside and outside the institutions of the EU".

In a speech to European socialists in Portugal, Mr Corbyn claimed Labour's alternative to Theresa May's Brexit plan could command a majority in the UK Parliament, reunite a divided nation, solve the Irish border question and boost British manufacturing.

He said further negotiations with Brussels would be "a small price to pay" to avoid the "serious damage" of a no-deal Brexit.

Labour's plan involves a "comprehensive customs union with the EU, with a British say in future trade deals" and a "new, strong relationship with the single market".

There would also be migration policies that "meet the needs of the economy" rather than "fuelling xenophobia with phoney immigration targets".

He told the congress of the Party of European Socialists in Lisbon: "Our alternative plan would ensure an open border in Ireland, provide security for investment, give our manufacturing sector a springboard for renewal, ensure we have the powers to rebuild our economy and public services, and guarantee world-beating support for workers, consumers and our environment."

In a warning that the European left needed to take on the "fake populists of the right", Mr Corbyn called for widespread economic reform.

"We have to recognise that EU support for austerity and failed neoliberal policies have caused serious hardship for working people across Europe, damaged the credibility of European social democratic parties, and played a significant role in the vote for Brexit.

"European socialists have to fight for a different kind of Europe.

"Our prize is a new progressive economic consensus that secures shared prosperity built on a powerful public realm.

"We must build a new Europe, inside and outside the institutions of the EU, that really does work for the many, not the few."

Mr Corbyn also accused the Prime Minister of trying to "dodge scrutiny" after plans for a TV debate on Brexit fell apart.

"As in the General Election last year, when it came to it the Prime Minister backed off and refused the head-to-head debate on offer.

"Given that her botched deal would have a major impact on our country's future and our relationship with Europe, this is the very last time for Theresa May to dodge scrutiny."