Brexit: Government spending millions on preparation for no deal, minister admits

Steve Baker says it is 'responsible' to spend to prepare for all outcomes

The EU flag flies outside parliament in London (EPA)

The Government is preparing for a no deal with the EU with over £250m having already been pledged this year for exit preparations - including leaving without an agreement - a Brexit minister has said.

Steve Baker said it was "responsible" to spend to prepare for all outcomes.

Speaking in a Commons debate, he said: "To support departments the Treasury has committed over £250m of new money to departments like Defra, the Home Office, HMRC and the Department for Transport in this financial year for exit preparations - including for no deal.”

Mr Baker added that Government did not "want or expect a no deal outcome but we will be ready in any event".

Conservative Charlie Elphicke said at least £1bn should be set aside in the Budget to prepare for Brexit regardless of whether a deal is struck.

He said it would be in the "national interest" for the UK to start investing and preparing for all eventualities, dismissing suggestions it would be "wasted" spending.

Chancellor Philip Hammond will announce details of the Budget on 22 November.

Former Tory leader Sir Iain Duncan Smith poked fun at European Commission president Jean-Claude Juncker as he hit back at MPs who questioned if the UK was speaking with one voice over Brexit.

He said: "I remind them Germany hasn't got a government yet. Spain is in total chaos. The Netherlands only just managed to get a government.

"Mr Juncker seems to spend an awful lot of time in bars getting 28 pints of beer and not being able to figure out who is with him.

"And the last element is they all now gave separate messages about what their relationship with the UK would be going forward."

PA