The Labour Party told to scrap the House of Lords in leaked policy review

The suggestion was made in a draft of a constitutional review led by former prime minister Gordon Brown, and could also see mayors be given power over local education and transport policy.

The draft also suggested handing new economic powers, including over tax, to local regions and devolved nations, according to the Guardian.

The newspaper, which saw a leaked copy of the review, reported that measures under consideration included allowing local democratically elected bodies to promote Bills in Parliament, giving citizens a constitutional guarantee of social and economic rights.

A new ethics panel could see a jury of citizens rule on complaints against MPs as part of a wider crackdown on standards in Parliament.

Second jobs for MPs could be banned and a new code of conduct could replace the ministerial code under the proposals.

Labour did not deny the reporting but stressed that the commission’s work is ongoing, rather than an adopted policy.

A Labour spokesperson said: “This refers to one of several early drafts. The commission has yet to take a view on all these issues.”

Party leader Sir Keir Starmer commissioned Mr Brown, who was in Number 10 from 2007 to 2010, to lead the review into possible reforms last September.

The agreed measures could reportedly be unveiled later this year.

It comes amid news that Angela Rayner, the party’s deputy leader, will use her opening speech to Labour conference to end the “Tory procurement racket”.

She will pledge to make the most out of Brexit by pledging that every pound spent in procurement is “guided by the national interest” to create jobs and level up the UK.

In her opening speech to Labour conference on Sunday, she will unveil a new National Procurement Plan which will be “tough on waste” over companies who repeatedly fail to deliver.

This will seek to claw back taxpayers money and could even see failed providers struck off contracts.

It comes after the Government wrote off almost £10 billion of personal protective equipment (PPE) that was not up to scratch, out of date or undelivered.

"Labour is calling time on the Tories’ procurement racket run at the expense of British taxpayers,” said Ms Rayner.

"The Tories have left a legacy of sleaze, cronyism and corruption, with the British people left to pick up the bill. Labour will unleash the power of procurement for the public good.

"Under the next Labour Government there will be no hiding place for cronies and no corner for corruption. We’ll give the Tory sleaze merchants their marching orders, end handouts to tax havens and strike off failed providers.”