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Budget 2020 to be drafted on basis of no deal Brexit

Budget 2020 to be drafted on basis of no deal Brexit

The Government is preparing for a no deal Brexit next month.

Minister for Finance Paschal Donohoe has admitted that Budget 2020 has been drafted on the basis that Britain will leave the European Union on October 31st without a deal.

Minister onohoe will announce the full details of the Budget in the Dáil on 8 October.

It is understood Mr Donohoe will tell his Cabinet colleagues that Budget 2020 will be based on the working assumption that there will be a no-deal Brexit.

This is likely to mean that many tax cuts and spending increases on public services would have to be stalled.

Instead, the €700 million or so extra that would have been available for these purposes will be set aside to deal with the fall-out from a disorderly Brexit.

This anticipated approach from Government is not entirely unexpected, but it would signal a significant step up in planning for a no-deal Brexit.

The Government is likely to seek to have State-aid rules eased in an effort to offer financial assistance to businesses that would suffer most if there was a hard Brexit.

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