George Osborne's Emergency Brexit Budget Is Not Going To Happen Yet

27/06/2016 07:47

George Osborne has said he will not immediately implement the emergency Brexit Budget he warned would be necessary during the referendum campaign.

In an early morning statement at the Treasury, the chancellor warned it would "not be plain sailing" for the British economy in the coming days.

But he said the job of dealing with the impact on the public finances would have to wait until the Autumn there was a new prime minister - and new chancellor.

In a speech designed to reassure global financial markets, Osborne said Britain was prepared to confront Brexit "from a position of strength".

He said he did not "resile" from the warnings he made during the campaign. But he said given Article 50, the method of withdrawal from the EU, would now not be invoked until there was a new prime minister, it was "perfectly sensible" to delay any emergency Budget.

Osborne had said Brexit could trigger a recession that would require a £30bn package of spending cuts and tax rises. The plan was dubbed a "punishment Budget" by angry Brexiteers.

The Brexit vote and resignation of Cameron has likely destroyed Osborne's chances of taking over as prime minister.

Asked about his personal future, Osborne said he would address it in the "coming days".

And as to whether he would serve in a Conservative government led by a pro-Brexit leader, he added: "It is my country, right or wrong, and I intend to fulfil my responsibilities to the country."

The chancellor had been silent since the UK voted for Brexit on Thursday.

The Conservative Party is readying itself for a leadership contest in the wake of Cameron’s resignation.

Boris Johnson is seen as the frontrunner with home secretary Theresa May widely viewed as his main challenger.

Work and pensions secretary Stephen Crabb and education secretary Nicky Morgan are also believed to be considering bids.

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