George Osborne (2)

Chancellor George Osborne says the UK economy is in a "position of strength" as it prepares to face the challenges of leaving the European Union, in his first speech since the EU referendum results.

Mr Osborne said there was need for an emergency budget, as he warned during the referendum campaign, but added it was "perfectly sensible to wait for a new prime minister".

In a move to reassure and stabilise volatile financial markets, the Chancellor said: "I said we had to fix the roof so we were prepared for whatever the future held and thank goodness we did."

He added: "Only the UK can trigger Article 50. And in my judgement, we should only do that when there is a clear view about what new arrangements we are seeking with our European neighbours.

"In the meantime, during the negotiations that will follow, there will be no change to people's rights to travel and work and to the way our goods and services are traded or to the way our economy and financial system is regulated."

"You should not underestimate our resolve," Mr Osborne said.

He said he has spoken with Bank of England governor Mark Carney, who repeated his comments that there are "well thought through contingency plans if needed".