May 15th, 2026

Labour Power Struggle Highlights UK Fiscal Dilemma

Hetal Mehta, chief economist at St. James's Place, comments on the UK fiscal situation and gilt market reaction as pressure on Keir Starmer mounts following moves by senior Labour Party rivals to potentially challenge him as prime minister. Mehta tells Bloomberg Television that a more left-leaning leader raises the prospect of higher spending and higher taxes, which gets "into a territory where you disincentivize economic activity."