UK preparing 'buffers' for no-deal Brexit - minister

2018-10-28 17:54

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

London - Britain's finance minister on Sunday pledged that "fiscal buffers" would be in place to deal with the potential chaos of the country crashing out of the European Union without a deal in March.

Philip Hammond was speaking ahead of his speech in parliament on Monday in which he is to lay out Britain's last budget before Europe's second largest economy breaks up with the other 27 nations in the bloc.

The chancellor of the exchequer voiced optimism that the two sides could still reach an agreement despite the current impasse in negotiations.

But he told the BBC that he "can't give an absolute guarantee because there have to be two parties - it takes two to tango".

And he stressed that he was keeping financial firepower in reserve in case Britain crashes out without a deal and a period of financial mayhem ensues.

"What I will continue to do is maintain fiscal buffers, a reserve of borrowing power against my fiscal rules so that if the economy as a result of a no-deal Brexit - or indeed because of something else we haven't anticipated - needs support for the coming months and years, I have the capacity to provide that support," he said.

"That depends on what the markets are doing, it depends at the circumstances at the moment."

Officials in Brussels say they are prepared to hold another summit as soon as they see substantial progress on the outstanding issue of the Irish border.

A new UK-EU frontier will emerge between Ireland and Britain's Northern Ireland on March 29.

But the sides still cannot agree how to maintain frictionless trade that accounts for the different customs and regulatory rules that exist between Britain and the EU.

Hammond said that getting a deal "will minimise any negative effects" of the divorce but refused to be drawn on how much damage Brexit as a whole was causing.

And he admitted that Britain would need to come up with a brand new budget in a no-deal scenario.

"If we were to find ourselves in that situation, then we would need to take a different approach to the future of Britain's economy," he told Sky News.

"We would need to look at a different strategy and frankly we'd need to have a new budget that set out a different strategy for the future."

Read more on:    brexit

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Traffic Alerts

Jobs in Cape Town [change area]

Jobs in Western Cape region

IT Manager (contract)

Cape Town CBD
Communicate Cape Town IT
R330 000.00 - R458 000.00 Per Year

Cluster Financial Manager

Cape Town
Network Finance
R950 000.00 - R1 000 000.00 Per Year

Reporting Accountant

Cape Town
Network Finance Professional / Prudential
R310 000.00 - R360 000.00 Per Year

Property [change area]

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.