Overview

• Former Bank of England rate-setter Andrew Sentance and others compare the UK’s outlook to the 1970s, warning of stagflation, a possible run on the pound and even an IMF-style rescue if confidence breaks.
• HM Treasury calls the 1976 comparisons unfounded and says its fiscal approach has IMF endorsement.
• Analysts and media reports point to a roughly £50 billion shortfall in the public finances, with further tax rises widely expected to be considered for the autumn budget.
• Economists highlight rising UK borrowing costs, with Sentance noting gilt yields now exceed those of Greece as a sign of market unease.
• Voices including UBS and Reuters’ Justin McQueen describe the UK as facing, or already in, a stagflationary environment, while opposition figures urge spending cuts and a change of course.