Mr McDonnell is expected to confirm the plan as he launches “a radical review of the national institutions that manage our economy”, including both the Treasury and the Bank of England, and demands for access to Office for Budget Responsibility modelling.
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Mr McDonnell said: “I am delighted to convene this Economic Advisory Committee that will assist in developing a radical but pragmatic and deliverable economic policy for our country“.
Corbyn and his recently appointed shadow chancellor of the exchequer John McDonnell have argued for a so-called people’s QE, which would allow the Bank of England to print money to fund government projects for housing, infrastructure and other public services.
The shadow chancellor will say a future Labour government will live within its means, investing to grow the economy and sharing proceeds “more equally”.
Corbyn received little support from Labour members of parliament or large individual donors during his leadership campaign, in contrast to a warm reception from trade unions and most ordinary party members.
“The way things have happened till now can’t continue”, he said.
“I think that should be open to all parties in Parliament” to test their own ideas “in advance of getting into government”, he said. But the source said the party’s position would be that the central bank would remain independent.
The group, which will meet four times a year and give lectures in Westminster, include Thomas Piketty, “rock star” economist and author, Joseph Stiglitz, the Nobel prizewinner, and Anastasia Nesvetailova, a professor at City University. “Working alongside world leading economists Labour will present the coherent alternative our country desperately needs”, McDonnell said in a statement.
Such a graded tax system could be similar to income tax, where a variety of rates of paid depending on how much someone earns.
An SNP spokesman said:”Given that John McDonnell has just confirmed he still supports George Osborne’s fiscal charter, people across the United Kingdom will be hoping that his advisers will convince Labour of the folly of continuing with Tory austerity policies”.
Mr Corbyn used an appearance on BBC One’s Andrew Marr Show to hint at the possibility of an income tax cut for low earners while calling for firms to pay what they owe.
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He added: “The bottom rate of income tax I would hope we could lower if we can to help the poorest, the very lowest earners”.
