George Osborne, the Chancellor of the Exchequer, has announced that the Government has abandoned its aim to return to financial surplus by 2020. His decision comes after the decision in the referendum for the UK to leave the EU, which Osborne said was causing shocks to the economy.
“The referendum is expected to produce a significant negative economic shock to our economy. How we respond will determine the impact on jobs and growth”.
Speaking to the Greater Manchester Chambers of Commerce, he added:
“The government must provide fiscal credibility, so we will continue to be tough on the deficit, but we must be realistic about achieving a surplus by the end of this decade. This is precisely the flexibility that our rules provide for”.