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No emergency Budget following ‘Brexit’

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The chancellor of the exchequer stood up on the Monday following the EU referendum result to deliver a statement designed to reassure the markets. The British economy is ‘fundamentally strong’ and contingency plans are in place to ensure the country is ‘equipped for whatever happens’.

However, he made no mention of the emergency Budget, which during the referendum campaign he had suggested would immediately follow a vote for ‘Brexit’. Instead, the chancellor made clear that any decisions on what action the government should take to address the impact on the economy and the public finances ‘should wait for the OBR to assess the economy in the autumn’. Such action is still likely to involve ‘tax rises and spending cuts’, he confirmed in an interview on BBC Radio 4’s Today programme.

John Cullinane, CIOT tax policy director, commented that, ‘it will be important for the Government to consult carefully with business, tax professionals and others on the practical implications of policy changes, and for the Government to be as clear as possible as early as possible which EU laws they intend to retain and which they intend to repeal’.

On 28 June, The European Parliament passed a resolution concerning the UK’s referendum decision, urging the prime minister to trigger the formal withdrawal process by giving notification under Article 50 TEU at the Council meeting on 28/29 June. The prime minister did not do so and has stated his intention to leave this notification to his successor, who is expected to be in place by the autumn.

Issue: 1315
Categories: News