UK's Osborne: 'Absolutely' going to have to cut spending, raise taxes

British finance minister George Osborne said it was key that Britain provided fiscal stability in the wake of the decision to exit the European Union which has seen sterling plunge and markets tumble.

"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. "I think we can provide a clear plan."

Osborne also said Britain would have to raise taxes and cut spending to deal with the economic challenge posed after Britons voted to leave the European Union.

"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," he told BBC radio.

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

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