No emergency Budget: George Osborne moves to calm markets – but pound stays lower
The pound edged up against the dollar as George Osborne sought to calm markets first thing this morning, saying there will be no emergency Budget at least until a new Prime Minister is in place.
Earlier this month, Osborne had said a Brexit vote could lead to an emergency Budget "within weeks" – but this morning Osborne sought to provide certainty for the next few months.
He repeated David Cameron's assertion that the government won't trigger Article 50, which will kick off the UK's exit from the European Union, until the UK has a "clear view" of what is ahead – likely to be once a new Prime Minister is in place in October.
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In his first public appearance since Thursday's EU referendum, Osborne sought to reassure markets on three points: volatility, political uncertainty and the UK's long-term relationship with Europe. He said Britain will "confront what the future holds for us from a position of strength".
"Growth has been robust, employment is at a record high… and the Budget deficit has been brought down," said George Osborne this morning, as he sought to calm markets.
"That is not the outcome I wanted… [but] now the people have spoken, we in this democracy must accept the result…. I will do everything I can to make it work for Britain."
"It is inevitable that Britain's economy will have to adjust."
He said the government had been working with financial institutions since before the vote to ensure they were prepared for the effects of Brexit.
"It will not be plain sailing in the days ahead… [but] we are prepared for the unexpected, and equipped for whatever happens."
The pound regained some of its overnight losses against the dollar after Osborne's speech, edging up to $1.3445, 1.7 per cent down against the dollar – up from $1.3364.
Meanwhile, Labour leader Jeremy Corbyn prepared to fight for his leadership. Morning Wire understands shadow business secretary Angela Eagle will kick off another round of resignations this morning, after 11 of Corbyn's top team stepped down yesterday.
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