- Reports today said PM Theresa May was building a no-deal Brexit war chest
- No 10 would green light the use of the cash in January if failure looms in the talks
- Downing Street said the reports were no more than ‘speculation’ today
Brexir Secretary David Davis (pictured on Wednesday at Tory conference) has insisted Britain is ready for a no-deal exit from the EU
Billions of pounds will be released to help Britain prepare for a no-deal Brexit if talks look set for failure in January, it was claimed today.
Theresa May was said to be building the war chest in the hope it will persuade Brussels Britain really is prepared to walk away without a deal.
The PM has repeatedly insisted that ‘no deal is better than a bad deal’ amid fears the EU wants to punish Britain for voting to leave the bloc.
EU leaders are gathering in just 10 days time for a crucial summit on the Brexit talks. They are widely expected to postpone the start of trade talks and demand more from Britain on the divorce bill, Irish border and citizens’ rights.
The Sunday Telegraph revealed the Treasury plans for the extra spending. It said it would be targeted on making sure Britain’s customs checks work without the single market and other measures.
A source told the paper: ‘Billions of pounds will be unlocked in the New Year if progress has not been made.
‘We have to plan for a no deal.’
Sources at No 10 and in the Brexit department told MailOnline today the reports were ‘speculation’ but did not deny the claim.
Brexit Secretary David Davis has repeatedly said Britain is ready to leave the EU without a deal.
He told the Tory conference this week he remained optimistic of a ‘good deal’.
Chancellor Philip Hammond (centre) is building a war chest for a no deal Brexit that could be unlocked in the new year, it was claimed today
He said: ‘If the outcome of the negotiation falls short of the deal that Britain needs we will be ready for the alternative.
‘That is what a responsible Government does. Anything else would be a dereliction of duty.
‘So there is a determined exercise underway in Whitehall devoted to contingency arrangements so that we are ready for any outcome.
‘Not because it is what we seek, but because it needs to be done.’
Theresa May could authorise the spending of billions for a no-deal Brexit if talks look set for failure in the new year, it was claimed today