Victoria Derbyshire

Owen Smith calls for Labour to represent the Jewish community who, he says, have traditionally supported the party.

He says his bid for the leadership is a "challenge" not a coup and emphasises that he was elected by his constituents in Pontypridd.

Victoria Derbyshire

Image source, Getty Images

Jeremy Corbyn defends offering Shami Chakrabarti a peerage after she concluded an inquiry into anti-Semitism in the party.

The review found there was evidence of "ignorant attitudes" but said the "Labour Party is not overrun by anti-Semitism, Islamophobia, or other forms of racism".

There was criticism of former Liberty chief Ms Chakrabarti's peerage following her conclusions. - including from Labour's own deputy leader.

Mr Corbyn says he appointed her to the House of Lords because of "her record standing up for the liberties of everybody". He describes her as "someone of enormous talent".

Adam Fleming
Reporter, Daily Politics

Forget the debate between the candidates, the real drama here is from the audience members: a Labour activist who says she would feel more comfortable at a Conservative conference than one of her own party’s because of the behaviour she experienced at a Young Labour event, another who feels that sexist and racist abuse is not being dealt with adequately and a new joiner who feels that members who have signed up recently are not taken seriously.  

Victoria Derbyshire

One audience member says she would feel less concerned going to a Conservative conference as a Labour supporter than she would be going to a Labour conference as an Owen Smith supporter.

Jeremy Corbyn tells her that anyone should feel comfortable at a Labour Party meeting whatever their point of view. He also condemns abuse on Twitter.

Owen Smith says the abuse takes place because the party is divided and some of Mr Corbyn's supporters see him as "the only guardian of our values".

Mr Smith insists: "I'm not a red Tory. I'm not a Blairite. I'm a socialist."

Many in the audience say yes when Victoria Derbyshire asks whether the atmosphere in the party has become "toxic".

Victoria Derbyshire

On the abuse of MPs and others, leadership challenge Owen Smith alleges that "Jeremy hasn't stamped down it hard enough".

He calls for anyone found making anti-semitic comments to be kicked out of the Labour Party.

He argues that there are some on the "hard left" who have "drifted into anti-Semitic abuse" because of their views on Israel.

Victoria Derbyshire

Jeremy Corbyn is challenged about the abuse of MPs.

The Labour leader insists that complaints are with "dealt with very strongly and very robustly".

Abuse and discrimination are "not acceptable and not tolerated", he insists.

Victoria Derbyshire

The candidates are asked how they can unite Labour, which has been riven by infighting.

Owen Smith says he doesn't think there is "a chasm" between Labour MPs and members, though a few in the audience laugh at his claim.

Mr Corbyn says he wanted to "create a broad-based" shadow cabinet and would "reach out" to Labour MPs if re-elected.

Adam Fleming
Reporter, Daily Politics

Things have started off pretty friendly, with both men sharing their summer reading (JC chose Bones of Grace, Owen is reading the new Jonathan Franzen) and there was even a joke about whether Owen Smith could share Jeremy Corbyn’s allotment, after having to give up his. 

Although the audience keep highlighting the massive tensions within the wider party so things might not stay friendly for long...

Victoria Derbyshire

Both candidates make brief personal statements. Jeremy Corbyn says he has been the MP for Islington North for over 30 years.

He says he enjoys cycling and has had "the pleasure of being interviewed by Sir Bradley Wiggins".

Owen Smith says he "worked for big business" during his career before politics.

He admits to being "racked with nerves today" - not because of the debate but because the Smith household is expecting exam results this week.

Both men says they enjoy tending allotments, though Mr Smith gave his up when his wife returned to work.

You can watch the Victoria Derbyshire Labour hustings live by clicking on the BBC News channel link on this page.

Audience members give their initial views of the candidates. One says Mr Corbyn is "a thoroughly decent bloke" who doesn't deserve the treatment he's had from MPs.

Another thinks Labour "exists to get things done" and thinks Owen Smith is more likely to ensure the party is a broad church.

A third hits out at Mr Corbyn for, in his view, not doing enough to campaign for the UK's place in Europe.

And a fourth is unimpressed with both men and hopes that one of them will "convince me that you are suitable" to lead Labour.