Boris Johnson declares ‘project fear’ is over – before RBS and Barclays shares suspended

Boris Johnson has declared that “project fear is over” after the Chancellor said an emergency post-Brexit budget was unlikely to go ahead until a new Prime Minister is in place in the autumn.

Seeking to calm volatile financial markets in the week after the referendum, George Osborne said in a statement at 7.15am at the Treasury: “Britain is ready to confront what the future holds for us from a position of strength.”

Welcoming the statement outside his home in London, Mr Johnson told Sky News: “It is clear now that project fear is over, there is not going to be an emergency Budget, people’s pensions are safe, the pound is stable, markets are stable. I think that is all very good news.”

Throughout the EU referendum campaign leading Leave campaigners often criticised the Remain camp as “project fear” for their dire warnings about the future state of Britain in the event of a Brexit vote. One of the most prominent examples of “project fear” was Mr Osborne and Alistair Darling, the former Chancellor, joining forces during the campaign to warn of an “emergency Brexit Budget” if the Leave campaign won the referendum.

“The second point I want to make is that I’ve seen a lot of confusion over the weekend about the status of people living in this country. It’s absolutely clear that people from other European countries who are living here have their rights protected,” Mr Johnson added.

But following the former mayor of London’s comments both Barclays and RBS shares were suspended after heavy losses on the London Stock Exchange. Barclays share price was down 10.3 per cent and RBS was down 15 per cent on Monday, triggering automatic circuit breakers that kick in when a share price falls more than 8 per cent.

In his statement on Monday morning, Mr Osborne added: "Growth has been robust and employment is at a record high. Our economy is now about as strong as it could be to confront the challenge the country now faces."

This was the Chancellor's first public appearance since the referendum results were announced on Friday morning, which sent markets into turmoil.

“That is not the outcome that I wanted or that I threw everything into campaigning for but…now the people have spoken and we, in this democracy, must all accept that result and deliver on their instructions,” he added.

Meanwhile, Mr Johnson, in his column for The Daily Telegraph, claimed that the UK will “still have access to the single market” despite a vote to leave the EU. He also laid out plans for an “intense and intensifying” cooperation with Europe and said that he “cannot stress too much that Britain is part of Europe, and always will be”.

He added: “EU citizens living in this country will have their rights fully protected, and the same goes for British citizens living in the EU.

“British people will still be able to go and work in the EU; to live; to travel; to study; to buy homes and to settle down. As the German equivalent of the CBI – the BDI – has very sensibly reminded us, there will continue to be free trade, and access to the single market.