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The Chancellor George Osborne has reiterated the need to impose spending cuts and higher taxes as a result of the Brexit vote, even if an emergency Budget won't be issued until a new Prime Minister is chosen.

Mr Osborne warned of an emergency Budget during the referendum campaign, but on Monday said it would be “perfectly sensible to wait for a new prime minister”.

Now, the Chancellor has reiterated that the government will need to make savings if it is to cope with the "shock" of a vote to leave the EU.

Speaking to the BBC, Mr Osborne said life outside the EU would not be "as economically rosy" as part of the Union.

"It's very clear that the country is going to be poorer as a result of what's happening to the economy," he said.

"We are absolutely going to have to provide fiscal security to people, in other words we are going to have to show the country and the world that the country can live within its means."

When asked if that meant spending cuts and tax increases, he said: "Yes, absolutely. But that decision will come under a new prime minister - it's obviously not possible while the Conservative Party is having a leadership contest."

Mr Osborne earlier ruled himself out of the running to be the new Conservative Party leader and Prime Minister, explaining he did not think he would be able to reunite such a split party.