Osborne backs PM's decision to delay triggering Article 50

Osborne backs PM's decision to delay triggering Article 50




The chancellor of the exchequer has reassured Britons that the government's financial institutions were prepared for the eventuality of a Brexit.

In a statement on 27th June, George Osborne revealed that the Treasury, the Bank of England and the Financial Conduct Authority (FCA) had worked with the Prudential Regulation Authority (PRA) to prepare for the challenges that now lie ahead.

Mr Osborne said: “I don’t resile from any of the concerns I expressed during the campaign, but I fully accept the result of the referendum and will do everything I can to make it work for Britain.

“We and the PRA have worked systematically with each major financial institution in recent weeks to make sure they were ready to deal with the consequences of a vote to leave.

“As a result, our economy is about as strong as it could be to confront the challenge our country now faces.”

The chancellor named market volatility, uncertainty and Britain’s economic relationship with the EU as the three main issues tackled by the group.

Mr Osborne said swap lines were arranged in advance so that the Bank of England could lend in foreign currency and provide £250bn of funds if necessary.

He also backed the prime minister’s decision to delay triggering Article 50, which would begin proceedings to leave, until later in the year in order to allow market uncertainty to settle.

Britain’s economic relationship with the EU would be negotiated via debate, and further trade ties will be sought with China, India and North America.

“To all companies large and small I would say this: the British economy is fundamentally strong, we are highly competitive and we are open for business,” Mr Osborne added.

“It will not be plain sailing in the days ahead.

“But let me be clear … We were prepared for the unexpected.”

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