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Osborne: 'Absolutely' have to cut spending and raise taxes

George Osborne Credit: Reuters

George Osborne has said that the government will "absolutely" have to cut public spending and raise taxes following Friday's referendum decision to leave the European Union.

The chancellor said it is key that Britain provides fiscal stability in the wake of the Brexit decision.

"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 4.

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.

– Chancellor George Osborne

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

"I think we can provide a clear plan," he added.