Britain could be forced to seek an International Monetary Fund bailout for the first time since 1976 if it fails to rein in ballooning debt, according to economists cited by the Daily Telegraph. Jagjit Chadha, director of the National Institute of Economic and Social Research, and other analysts warn that surging borrowing costs and a debt load now exceeding £2.7 trillion leave the Treasury with little room to manoeuvre. The experts estimate that Chancellor of the Exchequer Rachel Reeves is contending with a fiscal gap of roughly £40-£50 billion. Without decisive action, they argue, the government risks struggling to meet pension and benefit payments and could face the same loss of market confidence that triggered Britain’s IMF rescue nearly half a century ago. In response, officials are exploring fresh revenue sources. One option under consideration is extending National Insurance contributions to rental income, a move the Times reports could raise about £2 billion a year. Separately, the Institute for Public Policy Research has proposed a windfall levy on banks’ earnings from reserves held at the Bank of England, which it says could generate up to £8 billion annually—or £32 billion over the life of the current parliament. Business groups are voicing alarm at the prospect of additional taxation. Asda chair Allan Leighton said higher levies are already feeding through to prices and hindering investment, echoing concerns raised by other major retailers that further fiscal tightening could damage growth. Reeves is expected to outline her budget plans in the autumn.