A Labour government would create a Scottish investment bank, Jeremy Corbyn has said.

The policy was revealed at a speech to party activists in Glasgow ahead of a hustings event with his leadership rival Owen Smith in the city.

Corbyn said the bank would "unlock the potential" of small businesses in the country.

He told party activists: "We will create a Scottish national bank under Scottish control and backed by the national investment bank.

"With £20bn of lending power to deliver funds to local projects and Scotland's small businesses.

"Just 8% of lending to small businesses in the UK goes to Scotland, compared to one third who that goes to London and the rest of the South East."

The Labour leader also used his speech to reiterate his opposition to any alliance with the SNP.

The Islington North MP said Wednesday's Government Expenditure and Revenue Scotland (GERS) report "underlined" the public's "concerns" with the economic case for independence.

He said: "A Scottish deficit of £15bn raises a huge question over the central economic mission of the SNP."

Scottish Labour leader Kezia Dugdale backed Corbyn's leadership rival Owen Smith on Monday.

Corbyn said he has been "very happy" to work with her since he was elected as leader in September 2015 but he is "disappointed" in her decision to back his rival.