Tax rises and spending cuts are on their way — BREXIT FALLOUT

Despite the uncertainty fueling financial instability, leaders in both Britain and the European Union signaled there would be no immediate start to negotiations on an European Union exit.

Osborne says he was “full throttle” for staying in the EU.

He also rejected the “nonsensical” argument that the Government should have had plans for how to deal with Brexit.

Merkel wouldn’t comment on whether it’s acceptable for London to wait until October, but said that a “long-term suspension” of the question wouldn’t be in either side’s economic interest. Britain began preparations to leave the European Union on Monday but said it would not be rushed into a quick exit, as markets plunged in the wake of a seismic referendum despite attempts to calm jitters. About a quarter said they would freeze hiring and five percent said they would cut jobs. “We were prepared for the unexpected”.

The pound fell 3.2 percent against the American dollar to $US1.32, having earlier hit a fresh 31-year low of $1.315, sinking below the level it had fallen to on Friday when it recorded its biggest one-day fall ever against the dollar. Bank shares were particularly hard hit.

Unlike the Prime Minister, Osborne was reportedly against holding an European Union referendum. “We were prepared for the unexpected”.

A no-confidence motion against his leadership is expected to be discussed at a party meeting Monday but Corbyn has steadfastly refused to step down.

British finance minister Osborne is due to make a statement at 7am (2pm Malaysia) to steady nerves in the global financial hub. He said that his role in the next Cabinet will be the decision of whomever forms the new government.

Underscoring the sense of uncertainty, a new survey Monday showed that one fifth of British business leaders are considering moving operations overseas and that one in four planned to freeze recruitment. That was a forecast repeated by every single credible body, ‘ he said. “So why would anybody buy from me, when they can buy cheaper from France or Italy’s small businesses?” The British people have chosen a different course, but I love this country. “We as a country now have to determine which model we are seeking”, he added.

Authorities reported an increase in cases of racial and xenophobic abuse after an emotionally charged campaign focused heavily on immigration.

Meanwhile, opposition leader Jeremy Corbyn faced upheaval within his Labour Party after more than 20 advisers quit his inner circle, calling on him to resign.

Critics dismissed the warning, and accused the Treasury official of running a campaign based on fear.

With the existence of the U.K.as a united entity at risk and the political establishment in meltdown, Alastair Campbell, who was director of communications for former Labour Prime Minister Tony Blair, told CNBC on Sunday that the U.K. was in “a pretty unsafe state” following the vote.

In addition, several nationalist politicians in Northern Ireland (where, likewise, the vote was generally to remain a part of the EU) also called for the country to be reunited with the Republic of Ireland.