by Emily Straton and Biodun Iginla, BBC News, London
21 minutes ago
Lord Falconer will be shadow justice secretary, Angela Eagle will be shadow business secretary and Lewisham MP Heidi Alexander will oversee health.
Chuka Umunna said he was leaving the front bench by "mutual agreement".
Mary Creagh, shadow international development secretary, said she was also returning to the backbenches.
Other confirmed appointments are:
But our correspondent added many MPs will find the appointment of Mr McDonnell - a key ally of Mr Corbyn on the left - "very hard to stomach".
A Labour source told the BBC the shadow cabinet would have a majority of women, despite the biggest jobs in the shadow cabinet all being given to men.
In other developments:
But the other leadership candidates Yvette Cooper and Liz Kendall, as well as Ms Creagh, Tristram Hunt, Rachel Reeves, Chris Leslie, Jamie Reed, Emma Reynolds and Shabana Mahmood said they would not serve in Mr Corbyn's shadow cabinet.
Ms Cooper will, however, chair a new party taskforce on refugees.
"Whilst there is much on which Jeremy and I agree, there are a number of key points of difference on policy which I believe it would be dishonest to deny exist," he said.
He added he would "find it difficult to abide by the collective responsibility" of being in the shadow cabinet - "not least on the European referendum".
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21 minutes ago
Jeremy Corbyn has named John McDonnell shadow chancellor and defeated leadership candidate Andy Burnham shadow home secretary.
Hilary Benn will be shadow foreign secretary in the new Labour leader's first shadow cabinet. Lord Falconer will be shadow justice secretary, Angela Eagle will be shadow business secretary and Lewisham MP Heidi Alexander will oversee health.
Chuka Umunna said he was leaving the front bench by "mutual agreement".
Mary Creagh, shadow international development secretary, said she was also returning to the backbenches.
'Hard to stomach'
Ms Eagle was also announced as shadow first secretary of state and will deputise for Mr Corbyn at Prime Minister's Questions when David Cameron is away.Other confirmed appointments are:
- Seema Malhotra as shadow chief secretary to the Treasury
- Diane Abbott shadow minister for international development
- Shadow Northern Ireland secretary Vernon Coaker
- Rosie Winterton to continue as chief whip
- Ian Murray to continue as shadow Scottish secretary.
But our correspondent added many MPs will find the appointment of Mr McDonnell - a key ally of Mr Corbyn on the left - "very hard to stomach".
A Labour source told the BBC the shadow cabinet would have a majority of women, despite the biggest jobs in the shadow cabinet all being given to men.
In other developments:
- Labour MP Diana Johnson tweeted in reaction to appointments: "It is so very disappointing - old fashioned male dominated Labour politics in the top positions in Shadow Cabinet #notforgirls."
- Ivan Lewis tweeted he lost his role as Shadow Northern Ireland secretary, despite telling Mr Corbyn he was willing to remain
- Labour said 15,500 new members have joined the party in the past 24 hours
- Mr Corbyn, MP for Islington North, spent the morning at an annual "fun day" organised by Camden and Islington NHS Mental Health Trust
- The new Labour leader is set for his first Commons clash with the government later in a debate over controversial reforms of trade union laws.
But the other leadership candidates Yvette Cooper and Liz Kendall, as well as Ms Creagh, Tristram Hunt, Rachel Reeves, Chris Leslie, Jamie Reed, Emma Reynolds and Shabana Mahmood said they would not serve in Mr Corbyn's shadow cabinet.
Ms Cooper will, however, chair a new party taskforce on refugees.
Europe disagreement
Mr Umunna - who pulled out of the leadership race days after declaring his candidacy earlier this year - described leaving the shadow cabinet as one of the most difficult "personal political decisions" he has had to make."Whilst there is much on which Jeremy and I agree, there are a number of key points of difference on policy which I believe it would be dishonest to deny exist," he said.
He added he would "find it difficult to abide by the collective responsibility" of being in the shadow cabinet - "not least on the European referendum".
Mr Corbyn has said he is not content with the EU as
it stands, but wants to stay to fight for a "better Europe". He had
previously refused to rule out campaigning to leave.
Few MPs backed Mr Corbyn in the leadership contest - which he won with 59% of the vote - but his deputy Mr Watson told the BBC's Andrew Marr Show there was "zero chance of a coup".
He did however concede that he had differences with Mr Corbyn over the leader's desire to scrap the Trident nuclear deterrent and take the UK out of Nato.
But he said his message for those refusing to serve in the shadow cabinet was "there's always someone else that can do a front bench job".
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Few MPs backed Mr Corbyn in the leadership contest - which he won with 59% of the vote - but his deputy Mr Watson told the BBC's Andrew Marr Show there was "zero chance of a coup".
He did however concede that he had differences with Mr Corbyn over the leader's desire to scrap the Trident nuclear deterrent and take the UK out of Nato.
But he said his message for those refusing to serve in the shadow cabinet was "there's always someone else that can do a front bench job".
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