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Britain to spend an extra £2.1 billion on no-deal Brexit planning


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Britain to spend an extra £2.1 billion on no-deal Brexit planning

By Andrew MacAskill

 

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FILE PHOTO: Britain's new Chancellor of the Exchequer Sajid Javid arrives at the treasury in London, Britain, July 24, 2019. Matt Dunham/Pool via REUTERS

 

LONDON (Reuters) - Britain said it is ramping up preparations for a no-deal Brexit by spending an extra 2.1 billion pounds to stockpile medicines, hire more border officials and fund one of the biggest peacetime advertising campaigns.

 

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.

 

In his first major policy announcement, new finance minister Sajid Javid said the outlay will allow the government to increase training for customs officials, hire more staff to deal with an expected increase in passport applications, 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 United Kingdom 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 Irish border.

 

Many investors say 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.

 

Supporters of Brexit say 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 United Kingdom would thrive if it left the European Union.

 

“TURBO-CHARGE NO-DEAL”

 

The finance ministry, which said the new money will “turbo-charge” no-deal preparations, will provide an immediate cash boost of 1.1 billion pounds and make a further 1 billion pounds 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 pounds to prepare for a no-deal exit, including 4.2 billion pounds of funding for this financial year.

 

The finance ministry said, among other initiatives, 434 million pounds will be spent to ensure vital supplies of medicines and medical products can be brought into the country, including hiring additional freight capacity, warehousing and stockpiling.

 

To get people and businesses ready for a no-deal Brexit, 138 million pounds will be spent on one of the biggest peacetime advertising campaigns and provide extra consular support for citizens living overseas.

 

A total of 344 million pounds will 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.

 

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.

 

The main opposition Labour party branded the spending an “appalling waste of taxpayers’ cash” because the majority of lawmakers in parliament had made clear their intention to block an exit without a withdrawal agreement.

 

“This government could have ruled out no deal, and spent these billions on our schools, hospitals, and people,” said John McDonnell, the party’s finance chief.

 

Chief Secretary to the Treasury Rishi Sunak rejected those claims.

 

“It is my job to make sure that we spend taxpayers’ money wisely, the good news here is a lot of this money and a lot of this investment is things we need to do in all cases because we are leaving the European Union,” he said.

 

“What we are doing is accelerating the urgency of when we spend that money and making sure it is spent now.”

 

He said more detail on the government’s spending plans would be given at a spending review and fiscal event later in the autumn.

 

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-- © Copyright Reuters 2019-08-01
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20 hours ago, ballpoint said:

£2.1 billion? Let's fund our NHS instead.  

Do not worry: from the 1st of Nov; 350 million pounds a week ! Promised by Boris the Liar.

 

The financial forex exchange markets are also helping to solve the import duty to be paid on UK origin products. Pound goes down, so for the €uro-countries the UK export industry could be competative again, even inclusive EU import duties.

Bey-the-way: the British are extremely good in that. I remember in 1970, the pound being DNM 11,82 = € 5,91. Now.. € 1,0917 ( 12:19 MET ???? Frankfurt time)

 

GBP continue ... down.jpg

average import duty into the EU, source HoC lib imp-exp statistics.jpg

collapse of the GBP tow Euro 1999-2018.jpg

Edited by puipuitom
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6 hours ago, CliffH said:

Britain to squander an extra £2.1 billion on no-deal Brexit planning.

 

They squandered millions and millions before on useless ferry provider deals, compensation because they didn't follow their own tendering rules and on the usual bunch of consultants. Heavily criticized by the public spending watchdog.

 

Will that make one iota difference - will it fcku.

 

It's only taxpayers money, plenty more where that came from. People will have to accept the austerity when it's announced soon.

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16 hours ago, pegman said:

Maybe these Tory Toffs should hold onto some of this money to setup soup kitchens rather than advertise more of their lies. They will be much needed by ex-expats and financial services workers once the crash out happens. There will be many empty banking towers in London where they can be setup.

"many empty banking towers"?my heart bleeds for them,EVERYONE paid a big price for the banks antics in 2008,THATS when the labour party devalued the pound to bail the banks out.

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45 minutes ago, Black arab said:

Its cost the uk 90 billion upto now to make a balls up of brexit.

The losses are much much more!

Only the international loss of purchasing power of the British currency is calculated briefly:

 

Since the referendum on June 23, 2016, the course is almost steady. Compared to the dollar, the minus is currently at 18 percent, compared to the euro at around 16 percent.

 

The money amount M2 of the UK is:

2.433.285 Million or 2.433 billions GBP

 

2.433 x 0,18 = 437,94 billions loss against $

 

Or in other words: The Brexit has cost the UK so far 52 years, the EU net contribution.

 

Of course, no politician voluntarily tells that the UK people.

 

 

united-kingdom-money-supply-m2@2x.png

Edited by tomacht8
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15 hours ago, puipuitom said:

See library of the HoC.

 

You forget a few other parts too, like: salaries of UK personell in EU, like pensions of Mr Farage.

Mutual organisations like EFSA, RASFF, EMA, and a lot more you British have to take care for all on your own.

Compared with the import duty into the EU on UK exports of 288 Bilion pounds… the UK contribution is peanuts.

And compared with the value-sinking of the British Pound.. it's peanut dust.

UK contr to EU.jpg

Don't worry the Dutch and the rest can chip in once the UK is out.

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On 8/2/2019 at 4:52 AM, CliffH said:

Britain to squander an extra £2.1 billion on no-deal Brexit planning.

This is not the first time in the last 3 years such sums of money has been set aside for Brexit... 

 

Billions has been already spent, we were supposed to be ready in March, then April, then May...

 

Now october, we need thousands more customs officers for October 31st, a official questioned on R4 yesterday explained the process of recruitment, they now cut it down from 8 months to 6, that from when they first advertise the job vancies, selection and vetting to when they start training, so how the hell are they going to be ready for October 31st??? (vetting that is the security clearance takes 3 months).

 

Ever thought what a £2.1 billion spend equates to a typical household??? nearly £100.

 

  

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Quote

Communities and Local Government Secretary Rt Hon Robert Jenrick MP said

"From Whitehall to town halls – everyone needs to be ready to fulfil our democratic mandate to leave the European Union by the end of October. 

Local government has a vital role in helping to make Brexit a success and it is absolutely right that together we intensify preparations in every community.

And to do this successfully I have asked every council to appoint a Brexit lead to work with government. We’ll be providing £20 million for councils to support the major step up in preparations.

I want all of us – central and local government – to be fully prepared for leaving the EU on 31 October whatever the circumstances. I know that we can achieve this, by continuing to work side by side with renewed national focus and intensity".

More: Government readies whole nation for Brexit with every council to have a designated Brexit lead

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