Brexit: UK draws up bailout package for farmers and fishermen in case of no-deal exit
The government is mapping out a multi-billion pound bailout package for British farmers and industry in case of a no-deal Brexit next month.
The plans reportedly include emergency assistance for sheep farmers, fishermen, car manufacturers and chemical suppliers who would be hit by disruption and/or increased EU tariffs in the event of a no-deal Brexit.
The UK and EU agreed today to extend talks past today’s deadline, marking the latest of many deadlines that has been rolled over by the two sides.
There is now less than three weeks for a trade deal to be struck, before the UK leaves the EU’s customs union and single market on 31 December.
Leaving on a no-deal basis would see EU tariffs on British exports surge to as much as 40 per cent, with the agriculture and manufacturing sectors hit especially hard.
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The Sunday Telegraph reports that Whitehall’s bailout package would be between £8bn and £10bn and that officials have identified the industries set to be worst hit by a no-deal exit – agriculture and food producers, chemical suppliers, the automotive industry and fishing.
The government will also reportedly carry out a Whitehall exercise on Wednesday called Operation Capstone, which will game the predicted effects of a no-deal Brexit on the UK economy.
Boris Johnson told Sky News today, after his phone call with EU chief Ursula von der Leyen, that no-deal was still the most likely outcome now.
He also said “where there is life there is hope”.
“We’re going to keep going talking to see what we can do,” he said.
“The UK won’t be walking away from talks.”
Von der Leyen reportedly told EU leaders on Friday that there was now a “higher probability for no-deal than deal”.