Chancellor George Osborne has said the UK economy is “fundamentally strong” but warned of continued “volatility” in financial markets.
In a message to businesses, he said the UK remained highly competitive and “open for business”, and indicated there would be no immediate emergency budget.
Before the chancellor’s statement, the pound slumped further in trading in Asia, down a further 2.6% against the dollar at $1.34.
Osborne warned there would need to be an adjustment in the UK economy but said there was no need to take any action until a new prime minister was in place.
The chancellor said it was already evident some firms are continuing to pause their decisions to invest or hire people.
He confirmed the decision to trigger Article 50 would be delayed until the autumn and that in the meantime there will be no change to people’s right to travel, work, trade goods and services, nor any change to how the economy was regulated.
In an attempt to reassure businesses, he said the Treasury, Bank of England and Financial Conduct Authority have spent the last few months putting in place robust contingency plans for the immediate financial aftermath of a Brexit vote.
The Bank of England stands ready to provide £250bn of funds through its normal facilities to continue to support banks and the smooth functioning of markets, he said.
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