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George Osborne Warns Of Brexit Budget Cuts

George Osborne Warns Of Brexit Budget Cuts

The British chancellor George Osborne has warned that Brexit would trigger tax hikes and spending cuts across the UK.

He says he would have to slash public spending and increase taxes in an emergency Budget to tackle a £30bn “black hole” if the UK votes to leave the European Union.

Press TV reports:

Osborne, who is campaigning for Britain to remain in the EU, made the remarks Wednesday as stock markets plunged on the prospect of Brexit.

He said that funding for schools, hospitals and the army would be slashed if the pro-Brexit side prevails.

“Quitting the EU would hit investment, hurt families and harm the British economy,” he said in released remarks.

“I would have a responsibility to try to restore stability to the public finances and that would mean an emergency budget where we would have to increase taxes and cut spending.”

He also said leaving the EU would create a 30 billion-pound hole in national finances, adding, as a result, the basic rate of income tax would increase, inheritance tax would be raised, and the budget for services including the National Health Service (NHS) would be reduced.

Britons will vote on June 23 on whether or not it should stay in the EU. The decision has far-reaching consequences for both the country and the 28-member bloc.

According to two recent opinion polls, “Leave” and “Remain” campaigns will have a very close contest in the upcoming referendum, as polls results stand at about 50-50.

British Prime Minister David Cameron, who supports the “Remain” camp, said on Sunday that “if we vote to come out, we are putting ourselves deliberately in a less good economic position in our absolute key market.”

Following his announcements 57 members of the British Parliament have vowed to block George Osborne’s “punishment budget”

In a letter published on Wednesday, pro-Brexit Tory MPs said they will reject Osborne’s “Brexit Budget,” hinting at a serious escalation of Tory infighting over the controversial decision.

Jermey Corbyn, the labour Party leader also made it clear that he would not support Osborne’s austerity budget.