LABOUR leadership challenger Owen Smith has said that honours will not be bestowed upon the party's donors, MPs, advisers and staff for five years if he defeats Jeremy Corbyn.

Smith said he wanted an honours system that rewarded "selfless acts, not political and personal patronage", as the row continued about Corbyn nominating human rights campaigner Shami Chakrabarti for a peerage as part of David Cameron's resignation honours.

Smith said Cameron's list – which included many Downing Street staffers and Conservative donors – was put together with "blatant cronyism".

"David Cameron's resignation honours list has brought the system into disrepute and deepened people's mistrust of politics," he said.

"It's simply not good enough for [Prime Minister] Theresa May to turn a blind eye to this situation – we need fundamental reform of the honours system so it can reward good deeds and restore people's trust in politics."

Smith, Corbyn's former shadow work and pensions secretary, also said his proposed honours ban would stay in place until a total overhaul of the system was completed.

Chakrabarti, who recently concluded an inquiry into anti-Semitism in the Labour Party, has said she was "honoured to accept Jeremy Corbyn's challenge and opportunity to help hold the government to account".

But the appointment of the former director of the Liberty human rights group was criticised by Jewish groups and Labour's deputy leader Tom Watson, who said it was a "mistake, because I don't agree with resignation honours".

However, the Labour leader yesterday restated his backing for an elected Upper House of Parliament, denouncing Cameron's controversial resignation honours list as "another nail in the coffin" of the House of Lords.

Corbyn said: "I want the House of Lords abolished and replaced by an elected upper chamber."

Describing the 800-member second chamber as "far too big", he added: "Cameron's cronyism has been quite appalling.

"Honours appear to be linked to donations to political parties and personal service to members of his family. I would also say that serving politicians should not be given honours because it's honour enough to be elected to public office."

In a series of interviews, Corbyn mounted a robust defence of his leadership and stated that the protection of public services would be a key priority of his leadership if he is re-elected next month by Labour members and supporters.

Corbyn said: "The idea of the be-all, know-all, see-all, do-all, control-all leader is something that is not very happy or healthy in a democracy. It is about communities and people."

He also appealed to people who do not think of Labour as their natural political home to "think again" if they value public services.

In a pitch to Tory voters south of the Border, he said countless people had been let down in the last six years by the "devastation" of public services.

Corbyn said: "Over the last six years you've been deceived on a scale not seen since Bernie Madoff's infamous Ponzi scheme.

"Time and again you've been told that to build a strong economy we had to tighten our belts and cut public funding.

"Today we have the utterly self-defeating reality of rapidly declining public services while our debt is going up."

"Waiting times are up, critically cancer waiting times are up. In some parts of the country a GP appointment is as rare as hen's teeth."

Corbyn added: "The choice for you and millions like you is what type of country you want."

"Even if you don't think of Labour as your natural political home, if you value your NHS, care for the elderly, an education system for all and a public transport system that works for its passengers, then it may be time to think again."

Corbyn also appeared to reject Shadow Chancellor John McDonnell's suggestion that it was "inevitable" both of them would step down if Labour lost the next General Election.

"Look, nothing is inevitable," said the Labour leader.

"And let's not start predicting the results of the next general election, which may be four years away."

Asked if he would step down if poll ratings do not improve and Labour loses council seats, Corbyn said: "The party members control what happens. They will decide, one way or another."