Operation Yellowhammer! The Hammond plan for cuts if there’s a no-deal
A MINISTER’S embarrassing slip yesterday revealed how Philip Hammond has ordered spending cuts in the event of a no-deal Brexit.
Treasury minister John Glen was photographed carrying documents setting out the details of ‘Operation Yellowhammer’ – his department’s codename for no-deal contingency planning.
The paper says ministers should focus on ‘internal reprioritisation’ to fund preparations for leaving the EU without trade arrangements.
The Chancellor announced last year he was making £3billion available to fund contingency plans, although half of it will not be released until after the UK has left in March next year.
But Operation Yellowhammer, circulated to ministers at a meeting yesterday, suggests the Treasury is asking departments to find the cash from existing budgets.
It states that although departments can bid for ‘Brexit allocations’ ‘their first call should be internal prioritisation’.
The memo will fuel concerns among Tory Eurosceptics the Treasury is hampering preparations for a no-deal Brexit.
MP Sir Bernard Jenkin said: ‘The Government has been consistently saying that no deal is better than a bad deal and that they would be prepared for any contingency. If the Chancellor and the Treasury are sabotaging that by failing to fund the necessary preparations, then the Prime Minister has to intervene and do something.’
Downing Street yesterday insisted departments would be given enough money to prepare for a no-deal Brexit.
The PM’s official spokesman said: ‘No one is being asked to cut frontline spending. There is still money available to be bid for.’
Mr Hammond also insisted money was available to fund preparations for a no-deal. But he confirmed that departments might have to extend austerity and cut existing programmes.
He told the BBC: ‘Departments have the funding for no-deal planning. What we’re beginning to discuss is now part of long-term contingency planning.’
Former Labour Cabinet minister Ben Bradshaw said the paper showed the Government was preparing for Brexit ‘in the same way they’d approach catastrophes like flooding, a disease outbreak or a terrorist attack’.