Cabinet ministers were expected to bid for a portion of a £2bn emergency no-deal fund handed down from the Treasury, according to multiple media reports.
Communities secretary James Brokenshire told Radio 4’s Today Programme this morning that it was “right and proper” that the government is “stepping up [its] preparations for ‘no-deal’”.
The emergency cash injection comes just a week after prime minister Theresa May cancelled a parliamentary vote on her Brexit deal.
Recent analysis from both the government and from the independent Bank of England showed that any Brexit scenario would leave the UK economy worse off.
A report from the Department for Exiting the European Union said agreeing May’s deal could reduce the size of the UK economy by 3.9% over the next 15 years, while a no-deal scenario would mean a 9.3% reduction.
The BoE released its own analysis on the same day in which it said a “disorderly” Brexit scenario could see GDP drop by 8% from its level in the first quarter of 2019.
A Cabinet Office spokesperson told PF they could not confirm or deny whether the government would put £2bn forward for no-deal planning.
A recent CIPFA panel discussion encouraged local authorities to begin their own preparations for any type of Brexit.