UK Chancellor Osborne warns of 'inevitable adjustment' in economy after Brexit vote

An emergency budget in the UK to deal with the fallout from the referendum vote to leave the EU now looks unlikely.

An emergency budget in the UK to deal with the fallout from the referendum vote to leave the EU looks unlikely to take place until the autumn, as British Chancellor George Osborne said it was better to delay action to shore up the public finances until a new prime minister is in place.

In an early-morning statement at the Treasury designed to calm market anxieties after the pound fell a further 2% against the US dollar in overnight trading, Mr Osborne insisted that the UK economy is "about as strong as it could be to confront the challenge our country now faces" and said Britain remains "open for business".