Labour leader Jeremy Corbyn has said the party in Scotland must challenge the SNP's "austerity programme".

The Islington North MP's comments were made at a leadership hustings in Glasgow between himself and Welsh MP Owen Smith.

Scottish Labour came third behind the Tories at the recent Holyrood election, the party's worst result since 1910.

Corbyn said: "Scottish Labour has grown in the past year, there has of course been tough challenges.

"The issues have to be the Labour party's commitment to redistribution of wealth and power.

"To challenge the SNP on its austerity programme which is so damaging to local government across Scotland."

The Labour leader also accused the pro-independence party of being "good" at "adopting Labour's clothes".

The debate at the SECC was ill tempered with the moderator repeatedly appealing for those in the audience to resist heckling and booing.

Smith was heckled by party members when he said Scottish Labour leader Kezia Dugdale is doing "a good job".

Dugdale publicly endorsed Smith's candidacy on Monday despite the Welsh MP only having the support of a minority of Scottish Constituency Labour Parties.

Smith joined Corbyn in ruling out any electoral pact with the SNP.

He dismissed claims the party was progressive and said Labour was the true "progressive left" party in the country.

The Pontypridd MP said Scotland is "underfunded" and pledged to invest £20bn through a UK-wide 'new deal' which would be past on through Westminster's block grant funding formula to Holyrood.

Corbyn and Smith clashed over their roles in the European Union referendum.

Smith criticised the Labour leader's performance at a rally in Cardiff and cast doubt over if the Labour leader actually cast a vote for Remain on the day.

Corbyn denied the accusation.

Around 23,000 Labour members in Scotland will have a vote in the contest as well as registered supporters and those who qualify to vote through their trade union.

Corbyn pledged earlier on Thursday in a speech to Labour activists in Glasgow to create a Scottish investment bank which would lend £20bn to small businesses in the country.

The bank would be controlled in Scotland.

Smith initiated a formal leadership challenge following the collapse of Corbyn's shadow cabinet and a vote of no confidence in his leadership among Labour MPs.

Voting will end in the contest on September 21 and the winner will be announced at a special party conference on September 24 in Liverpool.