£2.1bn in fund for no-deal planning

A FUNDING boost of £2.1 billion is part of the Government’s plan to show Brussels that it will not be “business as usual” in dealing with the UK.

Chancellor Sajid Javid announced the funding package, including £1.1bn already committed to plans for October 31 and £1bn in reserve, saying it is “vital we intensify our planning” for the Brexit deadline.

Commons Leader Jacob Rees-Mogg said Boris Johnson would not be “browbeaten” by Brussels and the European Union must realise the UK was not “frightened” of leaving.

The moves came as Bank of England governor Mark Carney warned a no-deal Brexit would be an “instantaneous shock” on the economy and cautioned the pound would fall, inflation would rise and GDP would slow.

The Bank has slashed its growth forecast to 1.3% for both this year and next, down from the 1.5% and the 1.6% previously predicted.

The Prime Minister also chaired his first meeting of the Brexit war cabinet – comprising the Chancellor, Foreign Secretary Dominic Raab, Michael Gove, Brexit Secretary Steve Barclay and Attorney General Geoffrey Cox – yesterday.

The group, formally known as the Exit Strategy committee or “XS”, first met on Monday, which was led by Mr Gove, the Government’s no-deal planning supremo, as the Prime Minister was in Scotland.

Mr Javid said the £2.1bn funding injection will ensure the UK is ready to leave the European Union “deal or no deal”.

However, Labour’s shadow chancellor, John McDonnell, called it an “appalling waste of taxpayers’ cash” and the Commons Public Accounts Committee is likely to scrutinise the funding.

Measures include £344m for border and customs operations, £434m to ensure vital medicines are available, £108m to support businesses and £138m for a public information campaign.

The funding will also pay for 500 more Border Force officers, support for passport processing, improved infrastructure at ports and extra cash for Operation Brock – the plan to cope with traffic chaos in Kent.

Supplies of medicines could be hit by disruption in a no-deal Brexit, so mitigation plans include increased freight capacity, warehousing and stockpiling.

In total the Treasury has made £6.3bn available to prepare for Brexit, including £4.2bn this financial year alone.

Mr Johnson has ordered planning for a no-deal Brexit to be ramped up, even though he has claimed the odds of it happening are “a million to one against”.

The Prime Minister sent his top Europe adviser David Frost to Brussels to deliver his message that the UK will be leaving on October 31 “whatever the circumstances”.

Liberal Democrat leader Jo Swinson said the Government had to spend money on protecting supplies of medicines rather than investing in services “all because they are choosing to pursue no deal”.