Tax rises and spending cuts required, says Osborne – The London Economic

Tax rises and spending cuts required, says Osborne

By Joe Mellor, Deputy Editor

The under pressure Chancellor George Osborne has announced that tax rises and spending cuts will be needed to deal with the “shock” of Brexit to help the UK economy weather the storm.

Osborne said that these cuts will need to be decided by the next conservative leader whoever that may be.

Speaking on Radio 4’s Today programme, Osborne said he stood by his Remain campaign warnings about what would happen in a Brexit situation, saying life would not be “as economically rosy” outside of the European project.

Osborne said: “It’s very clear that the country is going to be poorer as a result of what’s happening to the economy.

“We are absolutely going to have to provide fiscal security to people, in other words we are going to have to show the country and the world that the country can live within its means.”

The Chancellor was then asked if he thought this meant spending cuts and tax rises, he replied: “Yes, absolutely. But that decision will come under a new prime minister – it’s obviously not possible while the Conservative Party is having a leadership contest.”

Osborne, who was hailed as the successor to David Cameron, has now ruled himself out of the leadership race. Due to the Brexit vote it would be virtually impossible for the Chancellor to get the top job. There is enough pressure on him to just keep his current position, with many in the party expecting him to leave his post soon.

Jeremy Hunt, is now considering standing to succeed Mr Cameron as Conservative leader and prime minister. He has called for a second referendum to agree to the terms of leaving the EU, and only then would he ant to trigger Article 50, that allows a country to leave the EU. Until then Britain remains one of the member states regardless of the referendum result.

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