George Osborne's Brexit budget would guarantee a recession

Rather than slashing spending, the government would be wise to take a pragmatic approach to the economy if we left the EU

Picture the scene. It is 28 June, five days after Britain has decided to leave the European Union. Since the referendum, the financial markets have been panic-stricken. Shares and the pound have fallen, despite the efforts of the Bank of England to calm nerves.

David Cameron has called a meeting of the cabinet to be addressed by George Osborne. Eight days before the vote, the chancellor had warned that a Brexit vote would force him to deliver an emergency budget that would raise 30bn - half from tax increases and half from spending cuts.

Related: George Osborne: vote for Brexit and face 30bn of taxes and spending cuts