No-deal Brexit funding ramped up to £2bn in Budget 2018

Funding to prepare the UK government for a no-deal scenario as it exits the European Union next year has been given an additional £500m, taking the total allocated to aid departments with the planning to over £4m.

Chancellor Philip Hammond had already allocated £2.2bn to departments for Brexit preparations in last year's Autumn Statement, with a further £1.5bn to be allocated in 2019 to 2020. The latter sum was today increased to £2bn.

The UK is scheduled to exit the EU on 29 March 2019, with tensions running high in recent months as the government struggles to secure a deal with its European counterparts surrounding its exit.

Hammond yesterday told the BBC that the Budget was built on the assumption that there will be a Brexit deal in place. However, if necessary, he has retained borrowing headroom to ensure the government has the fiscal firepower needed to revisit the plans in the event of a no-deal. Additionally, the Spring Statement could be upgraded to a full budget.

"For all of the individual positive measures… this was a Budget that pulled its punches," commented Stephen Martin, director general of the Institute of Directors (IoD).

Business leaders lamented the lack of information on Brexit preparations for businesses outside of the public sector.

"Going into this Budget, IoD members urged the Chancellor to prioritise help for Brexit preparations. It is not enough simply to announce a potential ‘no-deal Brexit budget’, businesses need to get ready now," Martin continued. 

"While we hope the Chancellor’s confidence that there will be Brexit deal is well-placed, firms have to look at all possible scenarios and will be deeply disappointed to see no funds have been allocated to helping them map out potential outcomes."