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Osborne 'hands post-Brexit emergency budget to next PM'

The Chancellor has said it is "perfectly sensible" to wait until there is a new prime minister before implementing an emergency budget.

Responding to a question by ITV News Business Editor Joel Hills about his earlier statement that Brexit would demand "an immediate response from government," George Osborne said that a financial contingency plan was in place and liquidity had been made available, but an emergency budget would be put in place in Autumn.

Osborne: UK economy 'about as strong as it could be'

The Chancellor George Osborne has said the UK economy is "about as strong as it could be", as he looked to calm market fears following Brexit.

Speaking as financial trading started on Monday, Mr Osborne said the Leave vote in last week's EU referendum was "not the outcome I wanted" but said he "will do everything" he can to "make it work for Britain".

He added that "there will be an adjustment in our economy because of the decision that the British people have taken" but made no indication that there would be an emergency budget.

"I respect that decision and we're going to get on and deliver on that decision. But the impact on the economy will have an article on our public finances," he said.

His comments came after the pound suffered fresh losses during early trading on Asian markets on Monday morning.

Addressing the question of the free movement of labour following withdrawal from the EU, the chancellor said Britain is an "open and tolerant country" and he "will fight to keep it so".

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Pound suffers fresh losses in early Asian trading

Sterling was quoted at $1.34 on Monday. Credit: Reuters

The pound suffered fresh losses during early trading on Asian markets on Monday morning.

Sterling was quoted at $1.34 on Monday, down on Friday's close, when it dropped by more than 8% following the referendum result and slipped

Elsewhere, International Monetary Fund Managing Director Christine Lagarde said financial markets "vastly underestimated" the outcome of the vote.

But she added: "There was no panic and the central bankers did the job that they were prepared to do just in case, which was to put a lot of liquidity on the markets."

Farage: 'Mild' recession ahead 'nothing to do with Brexit'

Britain is headed for a "mild" recession, Nigel Farage has said - but denied it had anything to do with the UK's vote to leave the EU.

Nigel Farage campaigned for some 25 years for Brexit Credit: PA

The pound plummeted to its lowest level in 35 years in the immediate aftermath of the referendum result, while stock exchanges around the world suffered a slump in prices as traders panicked in the face of economic uncertainty.

But the Ukip leader, who campaigned for some 25 years for Britain to withdraw from the bloc, told the Sunday Telegraph he believed that would have happened anyway.

"There's nothing new here," he said.

"I think we are going into a mild recession anyway, completely regardless of Brexit. Our growth forecasts are down. Our public-sector borrowing is still not under control at all and everyone forgets that sterling is in a bear market, declining since July 2014."

"Increased global opportunities" await outside the single market, he added, with "no reason" why Britain would not be reaping the benefits within two years.

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Brexit 'might cost City its EU passport', bank boss warns

The City of London financial centre is at risk of losing its vital 'EU passport' after Britain voted to leave the EU, a European Central Bank boss has warned.

Francois Villeroy de Galhau, ECB council member Credit: Reuters

The 'passport' is relied upon by many London-based banks as it allows them to operate across the bloc without restrictions.

Speaking to France Inter radio, ECB Governing Council member Francois Villeroy de Galhau said if Britain chooses to leave the EU's single trade market then the City will not be able to keep that privilege.

"There is a precedent, it is the Norwegian model of European Economic Area, that would allow Britain to keep access to the single market but by committing to implement all EU rules," he added.

"It would be a bit paradoxical to leave the EU and apply all EU rules but that is one solution if Britain wants to keep access to the single market."

Brexit talks should be conducted as soon as possible to avoid uncertainties, he said.

The AA: Petrol prices could rise within days

Experts have warned petrol prices could rise soon. Credit: Reuters

Petrol and diesel prices could rise within days due to the plunge in the value of the pound, according to experts.

Brian Madderson, chairman of the Petrol Retailers Association, said a rise of 2.5p per litre would be expected if the US dollar continues to trade at around 1.35 to the pound.

"I would think certainly by early to middle of next week we'll see prices moving upwards", he added.

In a statement issued on Friday, the AA also predicted an increase in prices: "Assuming that current market conditions persist over the next 10-14 days, the price of petrol at some fuel stations might be expected to rise by 2.25p a litre or £1.25 a tank."

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