The fall out from the result of the EU referendum may take some time to settle but the government has moved to reassure the markets and industry that Britain is well placed to adjust to life outside the European Union.
The Chancellor, George Osborne, emerged for the first time since the Leave campaign’s seismic victory on Thursday to make a statement in an effort to calm the storm raging since the result became known in the early hours of Friday morning.
News of the Brexit saw the Prime Minister, David Cameron, announce his resignation and sent the pound tumbling and markets into turmoil.
The Chancellor had campaigned for Britain to remain within the EU but said the will of the people must be accepted and delivered upon.
He acknowledged that there would be an inevitable period of readjustment but backed Britain to respond robustly.
Mr Osborne said: “Britain is ready to confront what the future holds for us from a position of strength.”
The Chancellor ruled out an emergency budget in the next few weeks, instead saying that OBR should be give time to assess the economy in the autumn and for the new Prime Minister to take up office.
The responsibility to trigger Article 50 – the process that begins a country’s exit from the European Union – should lie with the new Prime Minister.
Mr Osborne said that despite this delay it will be very much business as normal for Britain’s companies. “No one should doubt our resolve to maintain the fiscal stability we have delivered for this country. 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.”
The Chancellor said that Britain must strive to agree a long-term economic relationship with the rest of Europe to ensure the best trade deal can be stuck.
Confirming his plans to continue as Chancellor in the short term, Mr Osborne said he was completely focussed on bringing “stability and reassurance”.
Backing away from the idea of a Britain retreating into splendid isolation, he said he didn’t want Britain to turn its back on Europe and intended to take an “active role” in determining the best terms for Britain: “I want this great trading nation of ours to put in place the strongest possible economic links with our European neighbours, with our close friends in North America and the Commonwealth, and our important partners like China and India.”
Optimism
Prior to the Chancellor’s statement, Secretary of State, Sajid Javid, had spoken of his desire to “make Brexit work for British business”. Mr Javid had pushed for Britain to remain a part of the European Union but struck a note of optimism and determination to ride out the initial shockwaves to get the economy back on track. He said: “Despite the current turmoil and uncertainty, I genuinely believe there are grounds for optimism.”
Like the Chancellor, Mr Javid underlined the British economy’s “deep, strong foundations” as key reasons why Britain “remains open for business, continues to grow and continues to thrive.”
Striking a positive note for SMEs across Britain, the Secretary said the freedom that would come with the removal of the EU’s excessive red tape would allow small business to prosper.
The government would also be able to make the tax system more competitive in an effort to help local businesses attract overseas investment.
He said: “A fresh start also gives a unique opportunity to shape a bright future for the UK as a global trading nation and open economy. But that chance will be squandered if we react to the referendum result by pulling down the shutters and turning our backs on the world.”
Fresh start
Mr Javid predicted a bright future saying the Brexit vote would give Britain the chance to make a fresh start as a global trading nation with an open economy.
However, he warned that this “unique opportunity” would be wasted if Britain were to shut itself off from Europe and the rest of the world.
Whilst he said he understood concerns about uncontrolled immigration, Mr Javid said that closing the door completely was not the answer: “For centuries, foreign businesses, foreign investors and skilled foreign workers have come to the UK and helped build the world-beating economy we have today. That outward-looking attitude must continue.”
In an effort to reassure the 16 million plus people who voted to remain, the Secretary said their views should be considered when it comes to developing new business relationships with Europe.
He said: “Whether you voted in or out, whether you run a kitchen-table start-up or a Canary Wharf multinational, if you’re involved in British business you should be involved in shaping its future. And the government is determined to help you succeed.”
The Secretary of State said that he planned to sit down with heads of industry and leaders of the biggest businesses to outline plans for the future. He backed British businesses to overcome the short instability, saying they had survived greater challenges and come back stronger than ever.
He concluded: “I’m confident that, together, we can turn today’s challenges into tomorrow’s opportunities. Together, we can make this work.”
The man expected to become the next Prime Minister, former Mayor of London Boris Johnson has stressed that despite the Brexit vote Britain will remain committed to playing a lead role in European affairs and continue to trade successfully on the continent.
Mr Johnson said: “There is every cause for optimism; a Britain rebooted, reset, renewed and able to engage with the whole world.
He played down fears surrounding Britain’s exit, saying they are being “wildly overdone” while the positives of withdrawing are being largely ignored.
He said: “The fundamentals of the UK economy are outstandingly strong – a dynamic and outward-looking economy with an ever-improving skills base, and with a big lead in some of the key growth sectors of the 21st century.
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It also creates secure jobs for local people, boosting the economy, and provides a potential base from which to offer construction training opportunities to help plug the industry’s skills gap.