25/09/2015 21:36 BST | Updated 25/09/2015 21:59 BST

Labour Not 'Deficit Deniers,' John McDonnell Says Party Will Support George Osborne's Fiscal Charter

John McDonnell, British Labour MP, speaks to the media outside the Palace of Westminster, Friday July 14, 2006 to announce his challenge for the Party Leadership. The leftist Labour Party legislator on Friday declared his candidacy to succeed Prime Minister Tony Blair, calling for the party to take a turn to the left. John McDonnell, 54, chairman of the Socialist Campaign Group, said he saw no difference between Blair's policies and those of Treasury Chief Gordon Brown, who is expected to bec

In a bid to patch up its beleaguered economic credibility, Labour will support George Osborne’s fiscal charter designed to guarantee "budget responsibility.” Speaking to the Guardian on Friday, Labour Shadow Chancellor John McDonnell said his party was not a “deficit denier,” and would back Osborne’s charter.

However, McDonnell insisted his party would take a different approach than the Conservatives to balancing the budget, including opposing tax cuts, protecting low and middle-earners and clamping down on tax evasion and avoidance.

A lack of trust in Labour’s economic credentials was cited by voters as one of the major reasons for the party’s failure at the general election in May. Corbyn’s support grew out of his anti-austerity plank opposing the sweeping cuts promised by the Conservatives.

McDonnell’s promise to adhere to the charter, which commits the Government to reduce debt falling as a share of GDP each year, is an attempt to counter the criticism of Labour under Ed Miliband.

"We accept we are going to have to live within our means and we always will do -- full stop,” said the shadow chancellor. “We are not deficit deniers. We will support the charter. We will support the charter on the basis we are going to want to balance the book, we do want to live within our means and we will tackle the deficit."

However, McDonnell promised a different approach to deficit reduction, by creating a “dividing line” between the parties. "Our basic line is we are not allowing either middle or low-earners or those on benefit to have to pay for the crisis,” he told the newspaper. “It is as simple as that."

Jeremy Corbyn will spend the weekend in Brighton ahead of his first Labour Party conference as leader, which starts on Sunday.

According to The Independent, Corbyn was planning to use his speech to apologise for Labour’s involvement in the second Iraq War. However, on Friday a spokesman for Corbyn rubbished that story. "Jeremy Corbyn said during his election campaign that he would apologise for the Iraq War,” the spokesman said. "He does intend to, but it will not be at the Labour conference."