Chancellor gives statement on EU referendum

The chancellor George Osborne has released a statement following the outcome of the EU referendum.

He said that the UK is ready to face the future “from a position of strength”.

The chancellor identified 3 challenges that the government will meet.

Financial markets

The government has put in place contingency plans to support the immediate financial aftermath and the functioning of markets.

The Bank of England is ready to provide £250 billion in funds to support banks.

It can lend in foreign currency if needed.

Work and travel 

The government has said during the negotiations there will be no changes to people’s rights to travel and work and to the way goods/services are traded to and from Europe.

Although the chancellor did not mention an emergency budget he said that the economy would need an "adjustment":

"It is already evident that as a result of Thursday’s decision, some firms are continuing to pause their decisions to invest, or to hire people.

“As I said before the referendum, this will have an impact on the economy and the public finances – and there will need to be action to address that […] it is sensible that decisions on what that action should consist of should wait for the Office for Budget Responsibility to assess the economy in the autumn, and for the new Prime Minister to be in place."

Economic relationship with Europe

The government will aim create long-term economic link with other European countries to provide the best possible terms of trade in goods and services.

The terms will be discussed and negotiated in due course.

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