Live updates

Advertisement

Chancellor abandons plan to balance books by 2020

Chancellor George Osborne has abandoned his plan to balance the UK's books by 2020 because of the economic impact of the country's decision to leave the European Union.

ITV News business editor Joel Hills reports:

In a speech to business leaders in Manchester Mr Osborne said: "We must be realistic about achieving a surplus by the end of the decade."

He added that the UK "needs to reduce uncertainty by moving as quickly as possible to forming a new relationship with the EU".

As the Bank of England said yesterday, the referendum result is as expected likely to lead to a significant negative shock for the British economy. How we respond will determine the impact on people's jobs and on economic growth.

The Bank of England can support demand, the Government must provide fiscal credibility so we will continue to be tough on the deficit but we must be realistic about achieving a surplus by the end of this decade and we need to reduce uncertainty by moving as quickly as possible to a new relationship with Europe and being super competitive...

The government must provide fiscal credibility, so we will continue to be tough on the deficit but we must be realistic about achieving a surplus by the end of this decade. This is precisely the flexibility that our rules provide for.

– Chancellor George Osborne

Osborne 'still Chancellor' if Gove wins Tory leadership

Michael Gove and George Osborne. Credit: PA

Michael Gove is reported to want George Osborne to stay on as Chancellor if he wins the Conservative leadership contest and becomes Prime Minister.

Advertisement

Osborne: Jo Cox's death should inspire less divisive politics

The death of Labour MP Jo Cox should inspire a less divisive political debate, Chancellor George Osborne has said.

Speaking on ITV's Peston on Sunday, Mr Osborne said there should be less "baseless assertions and inflammatory rhetoric" in the lead up to the June 23 referendum, and more "reasoned argument and facts".

He said there was a distinction to be made between addressing legitimate concerns about migration and “whipping up division” or "putting up that disgusting and vile poster that Nigel Farage did, which had echoes of literature used in the 1930s".

The chancellor paid tribute to Ms Cox and said he hopes there will be a memorial at Westminster "not just to her tragic death but to her incredible life".

Addressing the topic of the upcoming referendum, Mr Osborne said there would be no turning back if Britain votes to leave the EU.

"It's a one-way door to a much more uncertain world, where people's jobs, and their livelihoods are at risk," he said.

"If we vote to remain, we can have a prosperous and stronger economy going forward."

Load more updates