House of Commons
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Labour's Andrew Gwynne asks what the chancellor is doing to make sure the EU's single market is not undermined by events in Greece. George Osborne tells him the key is making sure the Eurozone finds "a communal way forward" to make sure political tensions do not "spill out" and affect the economy.

On the outgoing Greek finance minister Yanis Varoufakis - who resigned last night, Mr Osborne says: "I doubt the next finance minister will have quite the dress sense of the one Greece has just lost."

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House of Commons
Parliament

UK banks have reduced their exposure to bad debt compared to a few years ago because of the financial crisis, George Osborne tells MPs. But he says the UK is still vulnerable because it is an open economy, and a crisis in Europe "would not pass Britain by".

House of Commons
Parliament

George Osborne says the worst scenario for the UK coming out of the Greek debt crisis is that we have a "completely disorderly" situation over the next few weeks. He says it's a challenge for the UK as an "open economy".

House of Commons
Parliament

The chancellor is asked whether there are any tour operators unduly exposed to the situation in Greece, and at risk of failing. Mr Osborne says most British tour operators have very big operations in Greece - but adds that most are happy with the support they are receiving, and are going ahead with all future bookings - which is also helping bringing money into the Greek economy, he adds. He says the advice for tourists is not "don't travel to Greece" - it's "travel prepared".

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Greek people should not feel "ashamed" to get out of the "straitjacket" of the Eurozone and its "vulture funds", says Conservative Eurosceptic MP Christopher Chope. Mr Osborne says he agrees that Britain is "well out" of the Eurozone and "happy to stay that way",

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George Osborne says the situation of British nationals in Greece who get a British pension but who have a Greek bank account is a challenge. He says the government is continuing pension payments because "we don't know if stopping them might disrupt rent payments" and other bills

So far, Mr Osborne goes on to say, the Greek government has not put restrictions on pensioners bank accounts. The UK government has contacted several thousand Britons in Greece, and advice is under daily review, he adds.

House of Commons
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Labour MP Helen Goodman asks whether any assistance has been given to Greece along the lines of that given to eastern European countries, in finding ways to increase tax revenue. Mr Osborne says there is "a tradition of non-payment" in Greece. He says British civil servants have gone to Greece to try and improve revenue collection - but that it has all but dried up at the moment.

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Plaid Cymru MP Jonathan Edwards says history suggests that "crippling austerity" isn't the only way forward for Greece. The chancellor agrees with him that there are different approaches, and says the UK government is urging the two sides to find a common view.

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Andrew Tyrie, Conservative chairman of the Treasury Select Committee, earlier told MPs that Greece couldn't recover under the current euro exchange rates and almost certainly wouldn't be able re-pay all its debts He said "the best course now for Greece and the Eurozone would be to encourage Greece to recreate it's own currency and for the Eurozone to take all the necessary steps to prevent contagion."

To chuckles from around the House, Mr Osborne tells him: "When people try to tell us what currency we should adopt we don't take too kindly to it. I think we should respect the decision of the Greek government."

House of Commons
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David Winnick, Labour MP, says the reason Greece voted no was because of the "constant humiliation that the country has suffered" at the hands of other EU nations. He says Greece has a history of standing up to oppression - including Mussolini and the Nazis.

Mr Osborne responds: "If you join the Eurozone, you are joining an agreement with other nations and other institutions. That is why the UK did not want to join the EU."

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Labour leader hopeful Jeremy Corbyn asks whether the chancellor agrees there is something "remarkable" about the young people of Greece rejecting austerity and asking their government to renegotiate the terms of the bailout, despite the levels of youth unemployment  there. He argues that further austerity will only create "misery" for people in Greece.

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Former Conservative Chancellor Ken Clarke says the Greek government cannot simply "print a new Drachma", and there is no option for them but to accept the proposals from the EU.

Mr Osborne, in response, says it is clear that there needs to be major structural reform of the Greek economy, but equally other governments in the EU need to be open to options.

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The chancellor says he believes markets have not reacted much in response to the Greek referendum result because ministers in various EU countries have been "sensible" in their reaction.

Mr Osborne says there is a helpline for business, and help should be available in individual constituencies as well. The governor of the Bank of England remains in contact with the head of the European Central Bank, he adds.

House of Commons
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SNP Treasury spokesman Steward Hosie questions whether, given Greece voted No in the referendum, the chancellor will try to persuade his colleagues in the EU to respect the outcome, "stay calm", but find an outcome in everyone's interests? He also asks what plans there are to protect British businesses that export to Greece,

James Landale
Deputy political editor

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The economic risks to Britain of the Greek No vote are clear to see. But what of the political impact?

In the short term, the No vote will shape the context of this week's Budget. George Osborne will once again seize on the example of Greece to press home his argument for continued deficit reduction.

The chancellor will argue that it shows not only what happens to countries that do not get on top of their deficits, but also that greater fiscal restraint is needed to protect Britain against economic shocks such as the possibility of Greece exiting the eurozone.

Mr Osborne's opponents might wonder if such a resounding rejection of continued austerity by the Greek people is really to his advantage as he prepares to announce more spending cuts himself. But the chancellor is adamant.

Read more from James.