British Treasury chief George Osborne has abandoned his long-held goal of achieving a budget surplus by 2020 in the wake of the U.K.'s vote to leave the European Union.

Osborne says the referendum result is "likely to lead to a significant negative shock for the British economy."

He says that "we will continue to be tough on the deficit but we must be realistic about achieving a surplus by the end of this decade."

The Conservative government has cut billions from public spending in a bid to eliminate the country's deficit.

Bank of England chief Mark Carney warned Thursday that the referendum result was likely to have a significant negative impact on the economy.