RBC BlueBay's Neil Mehta: Labour Budget needs to go above and beyond

'Credible growth path' needed

Labour’s first Budget in 14 years needs to be fiscally credible, bold on long term growth and consistent with its manifesto pledges.

But with borrowing costs set to remain high and fiscal slippage commonplace, the government will need to do more than just balance the books to keep investors onside. We were meant to be ushering in a new period of economic stability. What to expect at the upcoming Autumn Budget Labour's post-election message was that of economic conservatism, a progressive growth agenda and a reset of EU relations – a nod to investors that the chaos of the Conservative government era was behind us. Yet the past few months have been a wake-up call. Settling public sector pay and the extent to...