Chancellor’s extra £2.1bn for Brexit as no-deal looms

Chancellor Sajid Javid has announced an additional £2.1 billion of government spending to prepare for Brexit amid the growing risk of a no-deal exit from the EU. The Chancellor confirmed an immediate £1.1bn cash injection for Whitehall departments and devolved administrations, with another £1bn in reserve if needed.

An additional £2.1 billion of government spending to prepare for Brexit has been announced, doubling the amount of funding in a further sign of the growing risk of a nodeal exit from the EU.

Chancellor Sajid Javid confirmed an immediate £1.1bn cash injection for Whitehall departments and devolved administrations, with another £1bn in reserve if needed.

The money will pay for 500 additional border guards and measures to secure the supply of medicines.

But the spree has already been challenged by MPS on the parliamentary spending watchdog, which warned that there was “not enough time” to spend the funds effectively before 31 October.

Mr Javid said: “With 92 days until the UK leaves the European Union it’s vital that we intensify our planning to ensure we are ready.

“We want to get a good deal that abolishes the anti-democratic backstop. But if we can’t get a good deal, we’ll have to leave without one.

“This additional £2.1bn will ensure we are ready to leave on 31 October – deal or no deal.”

The announcement came as Prime Minister Boris Johnson visited Northern Ireland on the third leg of a Uk-wide tour to promote the Union, meeting with the five main parties involved in talks to restart devolved power-sharing.

After days of tough rhetoric from Downing Street and ministers who insist the UK will not restart Brexit talks until the EU agrees to reopen the Withdrawal Agreement, DUP leader arlene foster picked up the baton, accusing Brussels of being “belligerent” and trying to “break up the UK”.

Mr Javid’s announcement means a total of £6.3bn has been set aside to prepare for Brexit.

Some £344 million will go towards border and customs operations, bringing the total number of border officers added this year to 1,000 and boosting capacity to process UK passport applications.

More money will be available for training of customs agents, and to invest in IT systems that will make completion of customs declarations easier.

Transport infrastructure around ports will be improved, and an additional £434 million will be spent to increase capacity for the stockpiling of medicines and medical products.

There will also be an extra £138m to boost public communications around getting ready for Brexit.

Departments and devolved administrations will be able to bid for an additional £1bn if they face further challenges.

Labour shadow chancellor John Mcdonnell said the announcement was an “appalling waste of taxpayers’ cash, all for the sake of Boris Johnson’s drive towards a totally avoidable no deal.

“This government could have ruled out no deal, and spent these billions on our schools, hospitals, and people,” Mr Mcdonnell said.

The spending will be probed by the Commons Public Accounts Committee when parliament returns from the summer recess, chairwoman Meg Hillier announced.

The Labour MP told the Evening Standard: “The Prime Minister is promising to throw hundreds of millions of pounds at Brexit as though that will solve his problems.

“With three months to go before 31 October there’s not enough time to spend this effectively – recruiting, training and delivering services takes more planning.

“The Public Accounts Committee will be looking at how much is spent and what it actually delivers.”

Downing Street has said Mr Johnson’s Europe adviser will hold talks with senior EU officials in Brussels to deliver the message that the UK will leave the EU on 31 October “whatever the circumstances”.

David Frost will meet key figures following his appointment as the Prime Minister’s “sherpa” for talks with the EU.