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The cabinet has decided to “ramp up” preparations for a no-deal Brexit amid uncertainty over the fate of Theresa May’s proposed EU exit deal.
Ministers approved £2bn to go to government departments to help if the UK leaves the EU on 29 March without a formal agreement.
They will also send letters to 140,000 firms advising them about preparations.
Labour, which has tabled a motion of no confidence in the PM, has accused Mrs May of wasting time.
And Lib Dem leader Sir Vince Cable, who is campaigning for another EU referendum, described the government’s latest announcement as “psychological warfare”.
The Conservative government are attempting to scare MPs, businesses and the public with the threat of a no-deal,” said Sir Vince, whose anti-Brexit party has 11 out of 650 MPs.
“Theresa May is irresponsibly trying to run down the clock so that the only option is to support her discredited deal.”
With 101 days left until Brexit and many MPs still opposed to the government’s withdrawal agreement, ministers met for two and a half hours for a longer-than-normal cabinet meeting.
Brexit Secretary Stephen Barclay said the cabinet had agreed that “preparing for a no deal will be an operational priority within government but our overall priority is to secure a deal”.
He said no-deal planning “needs to be much more of a priority for businesses” and there would be a “significant increase” in the guidance issued to them over the next 14 weeks, as Brexit day approaches.
Businesses will be provided with a 100-plus page online pack to help them prepare and emails will be sent out to 80,000 of those most like to be affected over the next few days.
Separately, Defence Secretary Gavin Williamson told MPs that 3,500 military personnel were ready to be deployed if needed by any government departments in the event of a no-deal Brexit.
In the autumn of 2017, The Treasury earmarked £3bn for ‘no deal’ planning.
In March, Chancellor Philip Hammond said half of that had been allocated to 20 government departments, with the Home Office, transport, the environment and business among the largest recipients.
BBC