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LONDON (Reuters) - Chancellor George Osborne said on Tuesday that Britain would have to raise taxes and cut spending to deal with the economic challenge posed after Britons voted to leave the European Union. "We are absolutely going to have to provide fiscal security to people, we are going to have to show the country and the world that the government can live within its means," he told BBC radio. Asked if that meant tax rises and spending cuts, he said: "Yes, absolutely." (Reporting by Michael Holden, editing by David Milliken)
By David Milliken LONDON (Reuters) - Britain will need to raise taxes and cut spending later this year to stabilise the public finances after last week's shock vote to leave the European Union, Chancellor George Osborne said on Tuesday. Osborne said Britain would be poorer due to the public's decision to leave the EU, which he had campaigned against, and that the country now needed to deal with the economic consequences, as well as to tackle new social divisions. Sterling plunged against the dollar to its lowest since 1985 after the vote, and two ratings agencies downgraded Britain's sovereign credit rating late on Monday.