Labour has hailed a report calling for the government to spend £42billion a year handing out free housing, food, bus passes, phones and broadband.

The utopian plan, drawn up by a crack team of academics, would involve the state picking up the tab for a range of basic costs.

The researchers at UCL's Institute for Global Prosperity say the radical move is needed to counter the 'rise of the robots' - as firms increasingly replace human workers with machines.

Shadow chancellor John McDonnell praised the 'bold new' approach, and said it would 'help inform Labour's thinking on how we can build an economy that truly works for the many not the few'.

Shadow chancellor John McDonnell praised the 'bold new' approach, and said it would 'help inform Labour's thinking on how we can build an economy that truly works for the many not the few'

Extending the freedom bus pass currently granted to over-60s to everyone would require another £5billion of spending

Under the plans, the state would be providing 1.8 billion meals a year at a cost of £4billion, adding to existing provision such as meals on wheels (pictured)

But critics branded the ideas 'daft' and warned it was reminiscent of the Soviet Union.

Under the plans, the NHS 'free at the point of delivery' principle would be extended across other key necessities.

The Treasury would borrow billions of pounds to build an extra 1.5million homes, which would be made available on a 'needs basis' at zero rent.

All the social housing would be exempted from council tax, and there would be an allowance to cover utilities.

Meanwhile a 'food service' would provide one third of the meals for the 2.2 million households deemed to experience 'food insecurity' each year.

Together with existing provision such as free school meals and meals on wheels, the state would be providing 1.8 billion meals a year at a cost of £4billion.

Extending the freedom bus pass currently granted to over-60s to everyone would require another £5billion of spending.

The most expensive element would be £20billion a year on handing out 'basic' phones to all citizens, paying their internet connection bill, and making the BBC TV licence free instead of the current level of £147.

Altogether the report says the 'Universal Basic Services' (UBS) proposals would cost £42billion – 2.3 per cent of UK GDP – which could be funded by slashing the tax-free Personal Allowance from £11,500 to £4,300.

The current welfare state arrangements would stay in place alongside the extra provision.

Professor Henrietta Moore, Director of the Institute for Global Prosperity, said 'Without radical new ideas that challenge the status quo, we face a future where the changing shape of our society and labour market leaves more and more people struggling simply to achieve the basics – let alone having the resources and mental energy to allow themselves and their families to flourish.

'As a society, we already accept that certain services like health and education should be provided free at the point of use to the whole population, because we understand that all of society benefits as a result. The concept of UBS is a logical extension of this principle.'

Jeremy Corbyn hinted in his conference speech (pictured) at taxes on firms that replace people with robots, saying there should be a 'new settlement between work and leisure'

Former civil service mandarin Professor Jonathan Portes, of King's College, London, said: 'The role of the state is to ensure an equitable distribution of not just money, but opportunity to participate and contribute to society.

'For that to be meaningful, there are likely to be certain services everyone should be able to access.'

Labour proposed large scale nationalisation, higher spending and big tax rises in its manifesto in June. The party has been seen as inching towards support for some sort of Universal Basic Income (UBI) scheme - where people are handed enough money for a basic standard of living without working.

Jeremy Corbyn hinted in his conference speech at taxes on firms that replace people with robots, saying there should be a 'new settlement between work and leisure'.

The Labour leader said with automation due to destroy millions of jobs in the coming decades, the state needed to intervene to ensure the benefits are shared across society.

Responding to the Institute's report, Mr McDonnell said: 'Rapid technological changes are a profound challenge for our economy and society.

'This report offers bold new thinking on how we can overcome those challenges and create an economy that is radically fairer and offers opportunities for all.

'It makes an important contribution to the debate around Universal Basic Income, and will help inform Labour's thinking on how we can build an economy that truly works for the many not the few.'

But Tory MP Henry Smith told MailOnline: 'This report is at best naive but if ever attempted would cost hardworking taxpayers and the British economy dearly.

'It's a sign of how far left Labour have become that they would back such a daft idea, no wonder they're expecting a run on the pound if they ever got near power.

'As we reach the centenary of the Soviet revolution it seems some haven't moved on.'