Tory MP urges Philip Hammond to set aside £1bn ‘no deal Brexit’ fund
3 min read
Conservative backbencher Charlie Elphicke has called on Philip Hammond to set aside a £1bn war chest for in case Britain leaves the EU without a trade deal.
The Dover MP said the money would "insure" ministers against "things going wrong at the last minute", with the added bonus of allowing the UK to strengthen its borders regardless.
The backbencher said the money would amount to "no-regrets spending” for the Chancellor, as he made the plea weeks ahead of Mr Hammond’s autumn budget.
"We should have made this investment long ago. Our customs systems are creaking, our border systems are ageing, our roads are not resilient,” Mr Elphicke told MPs.
"In other words, this is investment we ought to make anyway."
He added: “It is in the national interest that we invest now.
"At least £1bn should be allocated in the November Budget to invest in upgrading our systems and infrastructure so that we will be ready on day one to forge ahead on day two."
The call comes after Mr Hammond was slapped down by Theresa May earlier this month, having already sparked a row in his own party, when he said the Treasury had not yet set aside funds for a no deal outcome.
Brexit minister Steve Baker yesterday told MPs the Government “does not want or expect a no deal outcome” but will be “ready in any event.”
EU ‘THIRD PARTY AGREEMENTS’
The call comes as The Times reports that senior business groups fear that a post-Brexit transition deal will be agreed too late in the day for it to be effective.
Despite Theresa May’s aim to sign an “implementation period” that keeps the relationship between the UK and the bloc all but identical for up to two years, ministers are being warned that this could be held back by the 975 global deals agreed by the EU with countries outside the union.
While some of the arrangements, which include free-trade agreements, nuclear accords and financial services, may be altered to accommodate Britain, the magnitude of the task could prove difficult if some countries make their own demands.
The paper says that in effect, the EU could have to introduce some form of border with the UK to make sure that some products and services are not transferred illegally.
One ministerial source told The Times: “The problem of third party agreements is significant and no way forward has been identified.”
Elsewhere senior German MEP Manfred Weber, said Mrs May’s proposal to seal an implementation period on current terms “will not fly”.
The chairman of the European People’s Party, told a press conference: “I can only say when in March 2019 Britain will leave, the EPP will not accept a treaty that will simply copy and paste all the advantages of the EU membership.
“If a country leaves the EU, you are losing the advantages. We will not accept that you have the same conditions like a member state.”
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