Britain is ramping up preparations for a no-deal Brexit by spending an extra ￡2.1 billion (US$2.54 billion) to make sure the country is ready to leave the EU with or without a divorce deal at the end of October.
British Prime Minister Boris Johnson, who took power last week, has pledged to leave the trading bloc without an agreement in three months unless the EU agrees to renegotiate the deal agreed by former British prime minister Theresa May.
Ministers have warned that one of the most hotly contested elements of the divorce agreement — the Irish border backstop — would have to be struck out if there is to be a deal, something that the EU has repeatedly said it would not agree to.
In his first major policy announcement, new British Chancellor of the Exchequer Sajid Javid said that the extra money would fund a nationwide advertising campaign, ensure the supply of vital medicines, help Britons living abroad and improve infrastructure around ports.
“With 92 days until the UK leaves the European Union, it’s vital that we intensify our planning to ensure we are ready,” Javid said. “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.”
Wrenching the UK out of the EU without a deal means there would be no formal transition arrangement to cover everything from post-Brexit pet passports to customs arrangements on the Northern Ireland border.
Many investors have said that a no-deal Brexit would send shock waves through the world economy, tip Britain into a recession, roil financial markets and weaken London’s position as the pre-eminent international financial center.
Supporters of Brexit have said that while there would be some short-term difficulties, the disruption of a no-deal Brexit has been overplayed and that in the long-term, the UK would thrive if it left the EU.
The British Treasury said that the new money would “turbo-charge” no-deal preparations.
Among other initiatives, ￡434 million would be spent to ensure vital supplies of medicines and that medical products could be transported into the country, including hiring additional freight capacity, warehousing and stockpiling.
To get people and businesses ready for a no-deal Brexit, ￡138 million would be spent on one of the biggest peacetime advertising campaigns and to provide extra consular support for citizens living overseas.
A total of ￡344 million would be spent on new border and customs operations, including hiring an extra 500 border force officers and doubling the support for customs agents to help companies fill in customs declarations.
The Treasury also said that a further ￡1 billion would be available for government departments and the devolved administrations in Scotland, Wales and Northern Ireland to improve their readiness.
This means the government has in total allocated ￡6.3 billion to prepare for a no-deal exit, including ￡4.2 billion of funding for this financial year.
Javid’s predecessor, Philip Hammond, who opposed leaving the EU without a divorce deal, was accused by Brexit supporters of failing to spend enough money to get Britain ready for a no-deal Brexit, undermining its negotiating position with Brussels.
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