News story

More than £2 billion Brexit preparation funding awarded to departments for a successful EU exit

More than 25 government departments and arms-length bodies have gone through a needs-based funding process to determine their specific allocation.

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  • More than £2 billion additional funding across 25 government departments for their Brexit preparations for all scenarios.

  • Funding is for 2019/20 priority areas including borders, trade and security.

The government is continuing to ramp up its plans for Brexit and has today (18 October 2018) allocated more than £2 billion for projects across departments.

The money will support vital preparations including getting new border and customs operations ready, gearing up UK trade policy with existing and new international partners, and taking back control of our waters.

More than 25 government departments and arms-length bodies have gone through a needs-based funding process to determine their specific allocation.

Chancellor of the Exchequer, Philip Hammond, said:

The PM’s deal is the only way to deliver on the referendum while protecting jobs, businesses and prosperity. I’ve worked with departments so they have the resources to prepare as we leave the European Union, including our borders, trade policies and support for businesses. But a responsible government prepares for all contingencies and that is why we’re stepping up no deal planning.

The Treasury has provided more than £4.2 billion for Brexit preparations since 2016. We are now allocating over £2 billion from that fund to continue and step up this work in 2019-20 as we leave the EU.

The Chancellor and Chief Secretary are making arrangements to ensure that departments and the Devolved Administrations can fund measures to address civil contingencies in a no deal scenario. Departments will be able to work with Cabinet Office, DExEU and Treasury to identify and fund contingencies to ensure the welfare, health, and security of UK citizens.

The five biggest Brexit preparation allocations confirmed today are received by Home Office (£480m), Defra (£410m), HMRC (£375m), BEIS (£190m) and the Department for International Trade (£128m). All the funding covers 2019-20, and is for core Brexit activity including deal and no deal preparations. It follows an earlier £1.5 billion allocated at Spring Statement for the 2018-19 year. Projects include:

  • Home Office will use its funding to increase Border Force capability with hundreds of new officers, continue preparing the EU Settlement Scheme to offer settled status and prepare law enforcement national security preparations.

  • In addition to taking back control of our waters, Defra will use its funding to deliver arrangements at the border and beyond to ensure uninterrupted trade in fish and fisheries products, chemicals, and agri-food.

  • BEIS will deliver business stability for company law and audit, in addition to developing options for a UK Global Navigation Satellite System.

  • HMRC will employ over 3,000 customer service and compliance staff in operational roles to handle increases in customs activity, ensuring trade continues to flow and revenue is protected. HMRC will also use its funding to deliver new technology and IT requirements at the border to ensure trade is as frictionless as possible.

  • DIT will use its allocation to securing post-Brexit continuity for around 40 trade agreements covering over 70 countries, accounting for 12% of the UK’s total trade. They will also use their funding for work on future trade agreements around the world.

Including this announcement, since 2016 the Chancellor has provided £4.2 billion towards EU exit preparations.

This consists of:

  • £412 million for DIT, FCO and DExEU at Autumn Budget 2016 and over £250 million across a number of departments in 2017-18.

  • £1.5 billion Brexit preparedness funding for 2018/2019, allocated at Spring Statement 2018.

  • £2 billion Brexit preparedness funding for 2019/2020, allocated today.

Published 18 December 2018