Britain sets aside extra US$2.6 billion to prepare for no-deal Brexit in move Labour Party calls ‘an appalling waste’
- Move is latest signal that new PM Boris Johnson is serious about leaving EU on October 31, with or without an agreement
- Labour Party accuses government of squandering money, saying funds could have been spent on ‘schools, hospitals and people’
The British government has set aside another £2.1 billion (US$2.6 billion) to prepare for a no-deal Brexit, the latest signal new Prime Minister Boris Johnson is serious about leaving the European Union – with or without a divorce agreement – on October 31.
The sum includes an immediate £1.1 billion (US$1.33 billion) cash boost to improve key border and customs infrastructure and to ensure access to critical medical supplies, the Treasury said in an emailed statement on Wednesday. The remainder will be made available to government departments if needed.
The new funding doubles the amount made available for no-deal Brexit planning this financial year to £4.2 billion, and brings the total to £6.3 billion.
Johnson has made leaving the EU “do or die” by Halloween the central tenet of his premiership since taking office on July 24, triggering a slump in the pound as he hinted he may not even hold further negotiations with the EU to try to secure a smooth exit.
But he has shown no signs of backing down, and has instructed government departments to ensure they are ready for a no-deal split.