UK ups no-deal Brexit planning as doubts grow over its readiness

  • The U.K.’s government under new Prime Minister Boris Johnson has stepped up planning and funding for a no-deal Brexit.
  • Johnson won a Conservative Party leadership race last week to become the new leader of the U.K. and throughout his leadership campaign Johnson had promised a tough approach to Brexit proceedings.
  • Many feel that contingency plans will not be enough to mitigate the fallout from an increasingly likely abrupt departure from the EU.

The U.K.’s government under new Prime Minister Boris Johnson has stepped up planning and funding for a no-deal Brexit, but many feel that contingency plans will not be enough to mitigate the fallout from an increasingly likely abrupt departure from the EU.

Johnson won a Conservative Party leadership race last week to become the new leader of the U.K. and throughout his leadership campaign Johnson had promised a tough approach to Brexit proceedings, saying the U.K. would leave the EU by a deadline of October 31 “do or die, come what may.”

His new team of ministers have wasted no time in espousing that message that the U.K. is now preparing for a no-deal departure. A “no-deal” Brexit is seen by many inside and outside of parliament as a “cliff-edge” scenario to be avoided at all costs. Leaving without a deal in place would mean an abrupt departure from the EU with no transition period allowing businesses to adjust to life outside the bloc.

‘Turbo-charging’ no-deal

Newly-appointed Finance Minister Sajid Javid announced an extra £1 billion in funding for no-deal preparations on Sunday. This includes a public information campaign to ready businesses and the public for no-deal, extra border force officials and possible new infrastructure at British ports to deal with the logistical ramifications from a no-deal Brexit.

Meanwhile, Michael Gove, who was put in charge of planning for a no-deal Brexit, said on Sunday that the government is now “working on the assumption” of leaving the EU without a deal. Then on Monday, new Foreign Minister Dominic Raab upped the ante by announcing that the U.K. is “turbo-charging” no-deal Brexit preparations.

Sterling took a hit on the uncertainties surrounding the Brexit process and was trading 0.4% lower against the dollar, at $1.2334 on Monday…

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