Dozens of UK economists - including a former Bank of England adviser - have indicated they are publicly backing the policies of Labour leadership candidate Jeremy Corbyn.

In a significant boost to Mr Corbyn's campaign, more than 40 economists have reportedly added their signatures to a letter in the Observer dismissing claims the Islington North MP is "extreme".

Instead, they argue that Mr Corbyn's opposition to austerity is "actually mainstream economics".

Danny Blanchflower, a former member of the monetary policy committee, is said to be among the signatories.

The letter says: "The accusation is widely made that Jeremy Corbyn and his supporters have moved to the extreme left on economic policy. But this is not supported by the candidate's statements or policies.


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"His opposition to austerity is actually mainstream economics, even backed by the conservative IMF. He aims to boost growth and prosperity."

But leadership rival Andy Burnham said Labour must show voters it is "serious" on the economy and warned that "economic credibility is all".

Earlier, the shadow health secretary warned against flirting with quitting the European Union in an apparent swipe at Mr Corbyn.

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Insisting a British exit would put jobs and the economy at risk, Mr Burnham said it was time to "nail our colours firmly to the mast" and pledged to be "proudly pro-European" if he takes the top job.

Meanwhile, Betty Boothroyd, former Speaker of the Commons and Labour MP, has warned that her "old party" is heading for "the scrapheap of history" if it elects Mr Corbyn as its leader.

Baroness Boothroyd, who now sits as a crossbench peer, accused Mr Corbyn’s hard-left supporters of "deluding a new generation" with the same extremist "claptrap" that gripped the party 30 years ago.

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Writing in the Sunday Times, she said: "What party in its right mind would allow a combination of far-left enemies, militant trade unions and first-time supporters to decide its fate?

She added: "My old party is galloping towards the precipice. I urge it to heed the jagged rocks before it is too late."

Mr Corbyn's campaign told The Observer that, if elected, he would reserve the right to re-nationalise Royal Bank of Scotland and other public assets "with no compensation" if they are sold at a knockdown price over the next five years.