Budget 2018: Government ‘has no plan for a No Deal Brexit’, says East Mids boss
Nottingham, Derby and Nottingham and Leicester have been shortlisted for share of £440m increase to the competitive allocation of the Transforming Cities Fund, Chancellor Philip Hammond announced in this afternoon’s Budget in a document that was lacking in real detail on East Midlands projects or fundng.
The shortlist of marks the next stage of the £1.7bn Transforming Cities Fund which under the government’s modern Industrial Strategy is supposed to support cities to make it easier, safer and quicker for people to travel and get to work by funding improved transport connections – but the news the cities had made the shortlist had been announced back in September.
Meanwhile, the news that the Chancellor has put aside £2bn for Brexit preparations and outcomes and hasn’t ruled out the idea of intervening “if the economy needs it” hasn’t with approval from one outspoken East Midlands Remainer.
Speaking at this afternoon’s 2018 Budget, Philip Hammond said the government was committed to “building a new future outside the EU”, and with that would come an extra £200m for the British Business Bank to replace European funding that will no longer be available.
But Ian Baxter, chairman of Baxter Freight and a consistent opponent of a ‘No Deal’ Brexit, hit back. He said: “What we have learned from the Chancellor’s Budget announcement is that he really isn’t planning on a no deal Brexit which may be the biggest thing to cheer of all his announcements. Nor does the Government have an adequate plan to deal with the directly foreseeable consequences of leaving the Customs Union whether in March or at the end of a transition period. Let me be clear: both of these scenarios would have significant and negative consequences for British business and the Public Finances. If the Government believes there is any real prospect of either happening then we will need a plan to deal with them.”
“If we were to end up with a ‘no deal’ Brexit this would require a completely new Budget announcement and economic forecast from the Government. Today’s £500m no deal funding, £2.2 billion Brexit funding or £15 billion Brexit contingency would not touch the sides of the problem. As well as emergency funding for HMRC’s customs capacity we would need to provide support for the implications for business which might face shutdowns (at least temporarily) of huge production lines and laying off staff from the likes of Nissan, Honda, Toyota and Jaguar Land Rover – just some of the multinational corporations with large parts of their manufacturing in the UK – as well as significant extra costs of doing their day-to-day business.
“Of course, the obvious reason the Chancellor hasn’t revealed the true cost of a ‘no deal’ Brexit to the UK is that letting the EU know this truth wouldn’t help our negotiating position at this crucial stage. Regardless of the type of deal negotiated, we need to be prepared for all Brexit eventualities. In practical terms, this means training more customs officers and building up HMRC’s IT capacity and physical infrastructure at the UK’s borders. So, whilst the final Brexit outcome is unclear, we are yet to see a tangible commitment to urgent investment in these areas. We can only hope the Government ends up getting a deal which makes such preparations unnecessary.”
