George Osborne warns of 'inevitable adjustment' in economy after Brexit vote

George Osborne has spoken of the 'inevitable adjustment' in economy following the Brexit vote.
George Osborne has spoken of the 'inevitable adjustment' in economy following the Brexit vote.
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An emergency budget to deal with the fallout from the referendum vote to leave the EU looks unlikely to take place until the autumn, as Chancellor George Osborne said it was better to delay action to shore up the public finances until a new prime minister is in place.

In an early-morning statement at the Treasury designed to calm market anxieties after the pound fell a further 2% against the US dollar in overnight trading, Mr Osborne insisted that the UK economy is "about as strong as it could be to confront the challenge our country now faces" and said Britain remains "open for business".

Following talks over the weekend with Bank of England Governor Mark Carney and fellow finance ministers and international economic organisations, Mr Osborne said that "further well-thought through contingency plans" were ready to be deployed if needed in response to further volatility.

Mr Osborne - who has kept a low public profile since the Brexit vote - said it was "inevitable" that the UK economy would face an "adjustment" in the wake of the Brexit vote, though he steered clear of repeating explicit warnings of recession made during the referendum campaign.

More to follow...