Britain's finance minister says Britain will have to raise taxes and cut spending to deal with the economic challenge posed after the UK voted to leave the European Union. As David Pollard reports, it follows another credit rating downgrade.
Some might call it a cruel twist of fate. The double whammy of a brutal ejection for England from the Euros football tournament - just days after a shock vote for Brexit. (SOUNDBITE) (English) ENGLAND FAN, ALEX, SAYING: "We embarrassed ourselves three or four days ago in the referendum, we've embarrassed ourselves now. It's a really, really sad time to be English." It was England's worst ever defeat. But two goals to one to tiny Iceland may, for economists, look good besides the UK's new credit score. S&P's downgrade to an AA rating stripping the UK of two investment grades - the agency's first ever double cut. Fitch downgrading one notch. SOUNDBITE (English) ETX CAPITAL HEAD OF TRADING, JOE RUNDLE, SAYING: "Leaving the EU in 5 or 6 years' time may the best thing the UK ever done, but at the moment that is certainly not clear and the path to get to a sensible plan is murky at best, so I think the ratings agencies had to downgrade." Fitch also halving its UK growth outlook next year and the year after. As the reality of a Brexit starts to sink in. And - as the UK finance minister issues a new warning that Britain will need to raise taxes and cut spending later this year to stabilise public finances. SOUNDBITE (English) ETX CAPITAL HEAD OF TRADING, JOE RUNDLE, SAYING: "Real jobs are being lost ... the UK property market will take a fall, and so, yeah, I think we will ultimately go into recession. It has the potential to be a very quick recession, but if we can't get any clarity on the negotiations, it could be a very long-lived, deep recession." Red cards for a stumbling economy - with, say the credit agencies, more, possibly, to come.