Anti-Brexit demonstrators protest outside Stormont house as Britain's Prime Minister Boris Johnson visits Belfast on Wednesday. Photo: AFP
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https://scmp.com/news/world/europe/article/3020869/appalling-waste-britain-sets-aside-extra-us26-billion-prepare-no Europe
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’
Britain's Prime Minister Boris Johnson speaks during the first meeting of the National Policing Board at the Home Office in London on Wednesday. Photo: AFP
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.
“If we can’t get a good deal, we’ll have to leave without one,” Chancellor of the Exchequer Sajid Javid said in the statement. “It’s vital that we intensify our planning to ensure we are ready.”
The new funding includes:
- £344 million to prepare new border and customs operations
- £434 million to ensure supply of vital medicines and medical products, including through freight capacity and stockpiling
- £108 million to support businesses
- £138 million for a public communications campaign
Hardline Brexiteers frequently accused Javid’s predecessor, Philip Hammond, of preventing the government from sufficiently preparing for a no-deal Brexit because of his opposition to that outcome – even though £4.2 billion was allocated for that scenario on his watch.
On Wednesday, the main opposition Labour Party accused the government of squandering money, while the Liberal Democrats called the expenditure a “drop in the ocean” compared with previous Treasury estimates that the British economy would suffer at least a £90 billion hit if it leaves the EU without an agreement.
“This is an appalling waste of taxpayers’ cash, all for the sake of Boris Johnson’s drive towards a totally avoidable no deal,” Labour’s Shadow Chancellor, John McDonnell, said in an emailed statement. “This government could have ruled out no-deal, and spent these billions on our schools, hospitals and people.”