UK Treasury chief abandons surplus goals after Brexit referendum shock
Posted: 4:15 AM, Jul 01, 2016
The Associated Press
Copyright Associated Press
<p>British Chancellor of the Exchequer George Osborne leaves after holding a press conference at The Treasury in London, Monday, June 27, 2016. Treasury chief Osborne sought to calm nerves in the markets Monday, as investors worried about the consequences of Britain leaving the European Union. In his first public appearance since the vote to leave the bloc Thursday, Osborne tried to reassure markets shaken by the result. (Stefan Rousseau/Pool Photo via AP)</p>
British Treasury chief George Osborne has abandoned his long-held goal of achieving a budget surplus by 2020 in the wake of the U.K.'s vote to leave the European Union.
Osborne says the referendum result is "likely to lead to a significant negative shock for the British economy."
He says that "we will continue to be tough on the deficit but we must be realistic about achieving a surplus by the end of this decade."
The Conservative government has cut billions from public spending in a bid to eliminate the country's deficit.
Bank of England chief Mark Carney warned Thursday that the referendum result was likely to have a significant negative impact on the economy.
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