No, we're not facing another IMF crisis - but our problems still have a whiff of the 1970s

International confidence in the UK government's economic policies had steadily evaporated.

- Richard Partington

Growth was stalling, inflation was galloping, and Labour - back in power after a reckless Conservative administration had gambled on tax cuts - was in deep trouble.

That was 1976, when James Callaghan's Labour government was forced to go cap in hand to the International Monetary Fund for an emergency loan. Fast forward almost half a century and some economists are drawing obvious parallels.

Just as Callaghan's chancellor, Denis Healey, did, Rachel Reeves is facing a challenge to placate jittery global investors. The UK's long-term borrowing costs have risen close to their highest level since 1998, adding to pressure on the chancellor before a tough autumn budget.

With a lacklustre growth outlook, sticky inflation, and Labour's welfare U-turns hitting the public finances, most economists expect Reeves to announce a series of tax increases to cover a shortfall of between £20bn and £40bn against her main, self-imposed, fiscal target.