Prime minister David Cameron has sought issue reassurances on the UK's strength after markets have continued to struggle on the second day of trading since the vote to leave the EU.
Speaking in the House of Commons, yesterday, Cameron said that Britain is in “a position of strength” as it seeks to confront the fallout from the vote to leave the EU.
“We have today one of the strongest major advanced economies in the world and we are well placed to face the challenges ahead,” he said, citing the UK's continued low inflation, which sits below the target of 2 per cent, high employment and strong capital requirements on banks.
“In the coming days, the Treasury, the Bank of England and the Financial Conduct Authority will continue to be in very close contact. They have contingency plans in place to maintain financial stability – and they will not hesitate to take further measures if required,” Cameron added, noting that Bank of England has already pledged to make £250bn of additional funds available to support banks and markets.
“It is going to be difficult. We have already seen that there are going to be adjustments within our economy, complex constitutional issues, and a challenging new negotiation to undertake with Europe,” he said.
Labour leader Jeremy Corbyn responded by asking Cameron to drop fiscal rules which require a surplus by the end of the Parliament, for the debt-to-GDP ratio to fall in every year of the parliament and for welfare spending to be capped.
“What the economy needs now is a clear plan for investment, particularly in those communities that have been so damaged by this Government and that have sent such a very strong message to all of us last week,” Corbyn said.