Joking apart, the IMF visitation of 1976 is still reliably posted as the ultimate failure of a Labour government. In fact, the IMF-precipitating episode of 1976 was sparked by someone at the Treasury, never identified, selling pounds for dollars in the wake of the cuts imposed and recovery achieved in 1975 by the chancellor, Denis Healey. Derek Mitchell, then permanent secretary at the Treasury, would later tell me that the entire 1976 episode, IMF and all, had been ‘strictly a headline crisis’. Indeed as the crisis broke, the scarcely pinko Investors Chronicle had asked: ‘why now, when the real crisis was last year?’
