Pound plunges to 31-year low in wake of Brexit vote

THE UK has narrowly voted to leave the EU sending the global financial markets into turmoil with the pound falling to a 31-year low.

After months of campaigning and early predictions of a narrow win for the Remain vote, the political map of Europe was turned upside down as the UK voted 52% to 48% to leave the EU after 43 years.

The turnout was 72%, with 30 million people voting on what is an historic day for Britain.

The Remain camp called the political shift “seismic”, with the Leave campaign saying there were now massive opportunities for the UK to liberate its future once the early hysteria had died down.

Having the rug pulled from under their feet, the Remain camp called for stability – although the fate of the Prime Minister and his strongest allies, such as Chancellor George Osborne remains uncertain.

The vote highlighted the massive divisions which have been inherent in the country for some time, with England and Wales appearing the more Eurosceptic and Scotland and Northern Ireland favouring staying in the EU. The latter now faces the prospect of a closed border with the neighbours in the Republic.

London voted strongly to stay in the EU but elsewhere, especially in the Midlands the result reflected the national trend.

Elsewhere, Leeds was split almost 50:50, while Manchester voted in favour of staying within the EU.

The economic futures of the Northern Powerhouse and more especially, the Midlands Engine must now have big question marks attached to them.

With the economic turmoil beginning to be felt, Labour’s Shadow Chancellor John McDonnell said the Bank of England may have to intervene to shore up the pound.

There will be pressure on the Bank with inflation likely to rise as foreign goods become more expensive.

The Remain camp has been naturally reticent but UKIP leader Nigel Farage told his supporters that the vote was a victory for ordinary people.

Mr Farage, who had initially hinted at a Remain win, said today would “go down in history as our independence day”.

He has already called for David Cameron to step down – although 84 MPs on the Leave side have put their names to a letter urging the Prime Minister to stay on.

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