U.S. Markets open in 45 mins

UK's Osborne says taxes will rise, spending will be cut after Brexit

Britain's Chancellor of the Exchequer, George Osborne, holds up his budget case for the cameras as he stands outside number 11 Downing Street in London, Britain July 8, 2015. REUTERS/Peter Nicholls

LONDON (Reuters) - Finance minister 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)