Sajid Javid unveiling £16.6 billion no-deal Brexit compensation package for businesses, universities and charities The money aims to make up for lost grants from the EU

Chancellor Sajid Javid is to unveil a £16.6 billion guarantee to compensate UK businesses, universities and charities in the event of a no-deal Brexit.

Mr Javid told the Daily Mail that the money would make up for lost grants from the European bloc.

The sum, which includes £4.3 billion for the coming year, is one of “many mechanisms and processes” that Mr Javid says the Conservative Party is implementing to mitigate for a no-deal Brexit.

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Mr Javid said that a no-deal departure was “very much on the table” and spoke of his fears for “the fabric” of society should the 31 October deadline not be honoured.

Fears for ‘fabric of society’

“I just fear we tear that fabric in a way that we might not be able to stitch it up again,” he told the paper.

“I don’t pretend for a second that there won’t be challenges,” he added.

“There will be some disruptions here because we can’t control what the EU do in a no deal situation? Of course not.

“But we are putting in place many mechanisms and processes to handle no deal and eventually, I also believe that we will come out and be stronger as a country.”

The UK chancellor added that the disruption of a no deal would not be as bad as remaining in the EU, stating that the best way for the country to unite and “heal” would be to deliver on Brexit.

“We can’t have this debate going on. We’ve had the referendum, it was the biggest democratic exercise in the history of our country. And we have to honour it,” he said.

Scotland demands £52 million

The guarantee follows the Scottish Government’s £52 million request to Westminster in the event of a no-deal Brexit.

Holyrood’s finance secretary, Derek Mackay, demanded that the UK Government cover any additional costs incurred as a result of a delay to the 31 October deadline.

Westminster has said that money from the EU Exit Operational Contingency Fund will be made available in the event Scotland faces disproportionate costs.

The October 31 date is the working deadline for Britain to leave the European Union, although a law now obligates Boris Johnson to seek a further extension should no agreement be reached at October’s European Council meeting.

Conservative party ‘unrecognisable’

Former chancellor Philip Hammond has described the current Conservative Party as “unrecognisable”.

Mr Hammond was one of 21 MPs who had the Conservative whip withdrawn after voting against the Government on legislation to block a no-deal Brexit.

“The time available means that the only deal with any prospect of delivering that outcome (to be out by 31 October) is the deal that they have already rejected and that many of them have voted against,” he wrote in The Times.

“So let me make an equally stark prediction: we will not be leaving the EU on 31 October.”