Live updates

Former Chancellor approves BoE's economic measures

George Osborne posted tweets in support of the interest rate cut. Credit: Jonathan Brady / PA Wire

Former Chancellor George Osborne has tweeted his approval for the Bank of England's (BoE) decision to cut interest rates and introduce other measures to support the UK's post-Brexit economy.

Osborne, who has been recognised for his work at the Treasury by former Prime Minister David Cameron with a Companion of Honour, called the BoE's announcement a "triple whammy".

Advertisement

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.

Load more updates