Jeremy Corbyn has suggested that 'gig economy' contracts should be replaced by cooperatives as he accused the Conservatives of presiding over a "broken" economic model.

The Labour leader said he wants to radically overhaul a system of inequality which is driving up poverty among vulnerable groups and harming the economy as a whole.

He set out Labour's plans to transform Britain's economic model, so the benefits of new technology are spread more widely, in a speech to the Co-operative Party conference.

Philip Hammond says that Labour poses - and I quote - 'an existentialist challenge to their economic model'. Well, Philip, yes, we do! We're not going to sit back when their economic model is seeing homelessness double, four million of our children living in poverty, over a million older people not getting the care they need. Their economic model is broken, it doesn't work for most people and even the IMF thinks inequality and low taxes for the richest are harming the economy. Jeremy Corbyn

Mr Corbyn suggested "gig economy" firms like ride-hailing service Uber or food delivery firm Deliveroo could be replaced by co-operatives, in which drivers collectively set pay and conditions and share or reinvest the profits from their work.

He vowed that a Labour Government would promote cooperative groups with the aim of doubling the size of the sector.

He also repeated warnings that Conservative infighting over Brexit was making a "shocking mess" of divorce negotiations and threatened to leave the country without an exit deal.

Mr Corbyn said the Conservatives were 'negotiating with each other instead of the EU'. Credit: PA

"The Tories are transparently failing in the Brexit negotiations," he said."They are split down the middle, negotiating with each other instead of the EU.

"With each passing day they are driving us closer to a no-deal Brexit."

Mr Corbyn said a no-deal outcome leaving Britain with World Trade Organisation tariffs was"the worst possible deal".

"The risk would be that key manufacturers leave for the European mainland, taking skilled jobs with them," he warned.

"In sector after sector, 'no deal' could prove to be an economic disaster."