The article recalls the sterling crisis of 28 September 1976, when a sharp fall in the pound and dwindling foreign currency reserves led the Labour government to seek an emergency loan from the International Monetary Fund. The author says the episode was a national humiliation and argues it offers a warning about the risks of losing market confidence.

Sterling fell below $1.70 and then to $1.62, while the government sought a $3.9 billion loan, equivalent to about £36.44 billion in 2026. The article contrasts the crisis-era inflation rate of 16.4 per cent with 3.1 per cent in August, and draws parallels with present-day Labour, high taxes and public debt, and energy-market turmoil. It argues that spending and taxation should be restrained, but presents this as the author’s political and economic judgement.