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Labour would force people who earn £1million a year to publish their tax records public in a radical shake-up of Britain's tax system, the Shadow Chancellor has said.

John McDonnell - who has published his own tax returns - said he would back such a policy today ahead of a major speech on the Budget.

British tax laws work under a strict principle of confidentiality between individual bill-payers and HM Revenue and Customs.

But Mr McDonnell argued transparency would cut tax avoidance and restore trust - drawing on the example of nations like Norway and Sweden.

"There is a big issue now about, people don't have trust in the establishment," he told the Guardian.

"So one way of re-establishing some element of openness and transparency would be, why not - over a million, you publish your tax return. Why not?"

(Image: PA)

He claimed the move would be the first step towards putting more money back into cash-starved public services.

"The first thing is making sure that tax avoidance and tax evasion are tackled properly; and the second issue is making sure that you invest rather than give it away," he said.

"At the moment we're getting the worst of all worlds. They don't collect it, they don't tackle it, and at the same time what they do collect, they give away."

Mr McDonnell's tax return shows he paid income tax of £16,177 in 2015/16 on earnings of £66,943. He did not declare any earnings from a second job.

Tory Chancellor Philip Hammond will unveil his first spring Budget next Wednesday - expected to cut inheritance tax for the wealthy.

In a speech in London today, his Labour rival will urge him to put more money into social care, the NHS and halting disability benefit cuts instead.

And with the Budget falling on International Women's Day, he will warn 86% of the cuts in public spending have fallen on women under the Tories.

“It is women who are bearing the brunt of low pay, cuts to in-work benefits, and the public sector pay cap," he will say.

“Put together, this government has created a toxic mix for women."

Mr McDonnell is also warning Chancellor Philip Hammond he must come up with extra money for social care and the NHS when he delivers his first Budget next week.