Osborne: ‘The country is going to be poorer’ because of Brexit

“We are in a prolonged period of economic adjustment in the UK, we are adjusting to life outside the EU and it will not be as economically rosy as life inside the EU,” he told BBC Radio. “I think we can provide a clear plan.”

“We are absolutely going to have to provide fiscal security to people, we are going to have to show the country and the world that the government can live within its means,” Osborne also said.

Asked if that meant tax rises and spending cuts, he said: “Yes, absolutely.”

Just a week before the historic referendum, the minister had warned voters that he would adopt new austerity measures if Britain decided to leave the EU.

Osborne stressed that his main aim was to restore stability to public finances, adding in order to do this an emergency budget including tax increases and spending cuts would have to be implemented.

“Quitting the EU would hit investment, hurt families and harm the British economy,” he said.

The fiscal measures will save the country £30 billion, according to Osborne.

He said the basic rate of income tax rate will rise 2 percentage points to 22 percent and the higher rate will climb by 3 points to 43 percent.

The ministry also plans to raise the inheritance, tax as well as duties on alcohol and petrol.

The minister’s remarks come as the decision to leave the EU has seen markets tumble and sterling plunge to its lowest levels in decades.

Source: rt.com