Brexit 'will trigger emergency Budget' to tackle £30bn black hole, warns Chancellor

As the EU referendum draws closer, Chancellor George Osborne has warned that the UK will face an emergency Budget to tackle a £30bn black hole in the public finances, in the event of a vote to leave European Union.

The Chancellor said that measures to address the deficit could include raising income tax and inheritance tax, as well as cutting NHS funding.

Under the measures outlined by the Chancellor, the basic rate of income tax could stand to rise by 2p, with higher rate taxpayers seeing a 3p increase. In addition, the UK could see cuts of 5% to police spending, transport and local government, as well as cuts to education and defence.

However, members of the Leave campaign have dismissed the claims, with some Conservative MPs warning that the Chancellor’s position ‘would become untenable’ if he were to proceed with the proposals.

The EU referendum will take place on 23 June.