‘Just hysteria’: UK faces a crisis but the Denis Healey comparison is overblown

Despite sluggish growth and rising borrowing costs, most economists agree that Rachel Reeves doesn't face a repeat of 1976

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

It was 1976, when James Callaghan's 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.