No-deal Brexit planning to cost extra £2.1 billion

Union jack; brexit; Britain flag
A British Union flag, also known as a Union Jack, flies beside a European Union (EU) flag during ongoing pro and anti Brexit protests outside the Houses of Parliament in London, U.K., on Tuesday, Jan. 22, 2019. The U.K.’s main opposition party is backing a plan that could open the door to a second European Union referendum, bringing the possibility of stopping Brexit a step closer. Photographer: Luke MacGregor/Bloomberg

Britain has announced that it is going to pump in an extra £2.1 billion of funding to get ready for a no-deal Brexit. This now doubles the amount of money that had been set aside this year.

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 his predecessor Theresa May.

Read: Boris Johnson’s Brexit Plan: What New PM Aims to Do in 100 Days

According to a BBC report, the plan includes more border force officers and upgrades to transport infrastructure at ports. There will also be more money to ease traffic congestion in Kent and tackle queues created by delays at the border. The package also includes money for stockpiling medicines to ensure continued supplies and a national programme to help businesses.

Announcing the move, Chancellor Sajid Javid said that with only 92 days left until UK leaves the EU, it was vital that the planning was intensified to ensure that the country was 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 October 31 – deal or no-deal,” he was quoted as saying.

Many supporters of Brexit have downplayed the consequences of a no-deal Brexit, saying while there might be short-term challenges, in the long-term, the United Kindgom is more likely to thrive if it left the European Union.

However, concerns 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 centre continue to increase with car manufacturers such as Ford, which operates two engine plants in Britain, planning to shut down one of the plants due to falling demand for the engine it makes there. 

Ford President, Automotive, Joseph Hinrichs told BBC radio, “It’s a bit of a rocky road. The odds of a no-deal Brexit certainly have increased in recent months… The key is going to be, whatever happens, what happens at the borders, what happens in the ports and importantly what happens to the pound sterling when it’s all said and done.”


Immediate cash boost of £1.1 billion and make a further £1 billion available for government departments and the devolved administrations in Scotland, Wales and Northern Ireland. 

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.

£434 million to be spent on medicine and medical products to be brought into the country, including hiring additional freight capacity, warehousing and stockpiling.

£138 million to be spent on biggest peacetime advertising campaigns and provide extra consular support for citizens living overseas and to get people and businesses ready for a no-deal Brexit

£344 million to 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.

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