Theresa May 'to plough billions of pounds' into no-deal Brexit plan

Emilio Casalicchio

Theresa May will spend billions of pounds on a back-up Brexit plan in case Britain crashes out of the EU without a deal, a new report has said.



The cash will be “unlocked” next year if negotiations will Brussels continue to be seized in a stalemate, according to the Sunday Telegraph.

The Prime Minister tried to re-ignite Brexit talks with her speech in Florence last month but major roadblocks - including on the so-called ‘divorce bill’ - remain.

A report yesterday said Germany and France refused Mrs May’s plea to begin talks on a transitional deal before the final sum of Britain’s outstanding debts is settled.

But a top Treasury 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.”

Among other things, the cash will be for new technology to speed up customs checks if the UK is forced to revert to World Trade Organisation rules, it adds.

Ministers are already working to ensure air traffic control and immigration systems are in place in the event of a no-deal Brexit.

But the Sunday Telegraph adds that rebel Tory MPs will renew the pressure on Mrs May to quit as Prime Minister if she fails to secure a good Brexit deal by Christmas.

Speaking on ITV's Peston on Sunday this morning, Scottish Conservative leader Ruth Davidson said that Britain would suffer “a hit” if it did not reach a deal on Brexit, but added that she was “hopeful” that sufficient progress would have been made by the end of the year.

Ms Davidson also called on the EU 27 to “show flexibility” during the Brexit negotiations as the Prime Minister had done in her Florence speech.

Appearing on the same programme, Scottish Minister Nicola Sturgeon said the “unfolding disaster” of Brexit negotiations and turmoil at the top of the Tory party was making the case for a second Scottish independence referendum “greater and stronger by the day.”

But she added that it was “premature” to set a date as it was necessary to “let the dust settle.”