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Labour wants to stand for "economic competence" while ensuring the poorest do not bear the brunt of cuts, according to new shadow chancellor John McDonnell.
Newly-elected Labour leader Jeremy Corbyn had campaigned on an anti-austerity message, he said, and they want to remain true to that.
He accused the Conservatives - and Chancellor George Osborne in particular - of "unfairly" targeting low- and middle-earners with their current programme of cost-cutting.
Newly-appointed shadow chancellor John McDonnell has warned David Cameron will not be given a "free hand" over the European referendum - but said Labour would wait to discover what renegotiations had been made before deciding which option to support.
He also confirmed new leader Jeremy Corbyn did want to remain in the EU.
Speaking outside his home this morning, the left-wing politician - a long-time ally of Mr Corbyn - said their main aim was to develop a "good Europe."
He also denied reports that the atmosphere at last night's party meeting had been frosty, saying he thought it had been "warm", adding: "I've been in a lot worse meetings, I tell you."
ITV News correspondent Martin Geissler visits Morley in West Yorkshire to ask voters if they would support Labour with Jeremy Corbyn as the leader of the party.
Shadow Chancellor Ed Balls lost his seat in the town to the Conservatives in the 2015 election.
New Labour leader Jeremy Corbyn chaired his first shadow cabinet meeting in the House of Commons today.
As he announced the appointments, he faced criticism for not having enough women in key senior posts despite having a majority female cabinet.
By contrast, there are 30 Government ministers who are either members of or attend Cabinet, of whom 10 are women.
Jeremy Corbyn has addressed his first Parliamentary Labour Party meeting.
Graham Allen MP tweeted the picture of the new Labour leader at the meeting.
Mr Corbyn has said 28,000 people have joined the Labour Party since he was elected on Saturday.
We heard a lot about "Corbynomics" during the Labour leadership campaign.
Now Jeremy Corbyn has been selected, what can we expect? His proposals hint at the radical, but much of his plan is mainstream such as re-nationalisation of the railways and utilities.
He plans to raise funds from a crackdown on tax avoidance and evasion and from more Quantitative Easing.
During the campaign, ITV News Business Editor Joel Hills spoke to economist Richard Murphy, who inspired "Corbynomics" to find out more.
TUC leader Frances O'Grady has urged Labour to pull together after its leadership election and get "stuck in" to opposing the Government on behalf of millions of workers.
Speaking at the TUC Congress in Brighton, she warned that a political party has to be more than a "fan club" and should reach out beyond its own ranks.
New Labour leader Jeremy Corbyn has defended the make-up of his shadow cabinet, arguing that those who criticised him for not putting women in senior roles were "living in the 18th century".
Speaking after he announced the full line-up, Mr Corbyn said he felt they had put together a "great team" which spanned all areas of policy.
He went on to dismiss questions over the differences in political beliefs between himself and some of his new team, saying he would tackle problems when they arose.
He also confirmed he would be attending Prime Minister's Questions on Wednesday, and said he wanted to ensure it would be "a bit less theatre and a bit more fact".
Jeremy Corbyn has completed his shadow cabinet appointments, amid controversy about the lack of women in key posts.
Announcing the full list of appointments, the Labour leader said “We have delivered a unifying, dynamic, inclusive new shadow cabinet which for the first time ever has a majority of women."
There are 16 women and 15 men in the shadow cabinet. They are:
Leader of the Opposition and Leader of the Labour Party Jeremy Corbyn MP
Deputy Leader of the Labour Party, Party Chair and Shadow Minister for the Cabinet Office Tom Watson MP
Shadow First Secretary of State, Shadow Secretary of State for Business, Innovation and Skills Angela Eagle MP
Shadow Chancellor of the Exchequer John McDonnell MP
Shadow Chief Secretary to the Treasury Seema Malhotra MP
Shadow Home Secretary Andy Burnham MP
Shadow Foreign Secretary Hilary Benn MP
Opposition Chief Whip Rosie Winterton MP
Shadow Secretary of State for Health Heidi Alexander MP
Shadow Secretary of State for Education Lucy Powell MP
Shadow Secretary of State for Work and Pensions Owen Smith MP
Shadow Secretary of State for Defence Maria Eagle MP
Shadow Lord Chancellor, Shadow Secretary of State for Justice Lord Falconer of Thoroton
Shadow Secretary of State for Communities and Local Government, Shadow Minister for the Constitutional Convention Jon Trickett MP
Shadow Secretary of State for Energy and Climate Change Lisa Nandy MP
Shadow Leader of the House of Commons Chris Bryant MP
Shadow Secretary of State for Transport Lilian Greenwood MP
Shadow Secretary of State for Northern Ireland Vernon Coaker MP
Shadow Secretary of State for International Development Diane Abbott MP
Shadow Secretary of State for Scotland Ian Murray MP
Shadow Secretary of State for Wales Nia Griffith MP
Shadow Secretary of State for Environment, Food and Rural Affairs Kerry McCarthy MP
Shadow Minister for Women and Equalities Kate Green MP
Shadow Secretary of State for Culture, Media and Sport Michael Dugher MP
Shadow Minister for Young People and Voter Registration Gloria De Piero MP
Shadow Minister for Mental Health Luciana Berger MP
Shadow Leader of the House of Lords Baroness Smith of Basildon
Lords Chief Whip Lord Bassam of Brighton
Shadow Attorney General Catherine McKinnell MP
Shadow Minister without Portfolio Jonathan Ashworth MP
Shadow Minister for Housing and Planning John Healey MP
Jeremy Corbyn's allies have said the "great offices of state" are a reflection of the 19th century, amid criticism that no women were appointed to the key shadow cabinet roles.
In a statement published on Facebook, Mr Corbyn's team said: "For Labour our proudest achievement is the creation of NHS. We are the party that delivered comprehensive education. We are the party that founded the Open University, and that established and will defend trade union and employment rights.
"The so-called ‘great offices of state’ as defined in the 19th century reflect an era before women or workers even had the vote, and before Labour had radically changed the state."
Latest ITV News reports
It hasn't started well for Jeremy Corbyn, writes Carl Dinnen - but he has the advantage of expectations starting off extremely low.
Newly-elected Labour leader Jeremy Corbyn has finalised his shadow cabinet - so who has made the cut?