May puts Britain on ‘no deal’ alert with 101 days to go until Brexit: Cabinet meets to pump billions of pounds more into contingency plans amid warnings it is ALREADY too late to avoid a disaster
- Theresa May is gathering Cabinet to discuss ramping up plans for no-deal Brexit
- Another £2billion has been allocated to contingency planning as risks increase
- Fears raised that large-scale plans are being allocated too late to soften the blow
- Concerns that ferries can no longer be hired to transport emergency supplies
- Deep divisions in PM's team over what to do if her Brexit deal is defeated by MPs
- It is final Cabinet meeting of the year as PM limps towards the Christmas break
Theresa May will put Britain on a Brexit war footing today as she gathers ministers to ramp up no-deal plans.
The PM is holding a crucial Cabinet meeting to sign off billions of pounds more spending on border checks and rerouting goods to 'friendlier' ports.
But doubts have been raised about whether it is already too late - with claims that only a third of the money allocated so far has been spent, and ships to carry emergency supplies of medicine and food have already been booked.
The Cabinet session is the last of the year as Mrs May limps towards a much needed Christmas respite.
Despite overwhelming opposition from Tories, the DUP, Labour, the SNP and Lib Dems, Downing Street still hopes that MPs will come round to her Brexit plan during the break.
Chancellor Philip Hammond (right) is allocating another £2billion to no-deal plans. Transport Secretary Chris Grayling (left) is facing claims he has not pushed ahead with preparations
Theresa May (pictured in the Commons last night) is limping towards the Christmas recess
Penny Mordaunt openly endorsed the idea in a speech to the Carlton Club last night, saying there should be a 'smooth glidepath' to no deal
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But with just 101 days to go before the UK leaves and Parliament deadlocked, the prospect of the UK crashing out is becoming ever more real.
Ministers led by Sajid Javid, Matt Hancock and Andrea Leadsom have been clamouring for contingency plans to be stepped up.
Cabinet is expected to be presented with three options this morning - escalating preparations with £2billion more funding, keeping planning at the same level, or dropping the idea of no-deal altogether and hope that Mrs May's deal is accepted by MPs.
They are set to agree with the PM that the state of readiness must be ramped up.
But Mr Hammond is said to be frustrated that only a third of the estimated £2.2billion funds previously allocated have been spent so far.
Fingers are being pointed about delays in chartering ferries that could transport emergency supplies.
Allies of Transport Secretary Chris Grayling blame the Treasury for delays in providing funding, but Mr Hammond's supporters say the department has left it too late and there is not much capacity left in the market.
One Cabinet source told MailOnline the government 'cannot put this off any longer'.
'We must recognise that no-deal now has to be the central assumption. It could happen by design or by accident, and we have to be ready,' they said.
Around £500million is expected to be ploughed into the Home Office to deal with potential problems at the border.
Customs systems are set to benefit from another £25million in a bid to ensure the ports can function in no deal.
Environment Secretary Michael Gove is set to have £400million to spend on agriculture, fisheries and food-related policy areas.
Trade Secretary Liam Fox will spend £100million hiring trade negotiators around the world in case a raft of new trade deals are needed urgently.
But deep splits in Mrs May's team have been erupting into the to the open, with senior figures openly discussing what happens when the package thrashed out with Brussels is defeated.
Amber Rudd yesterday urged a series of votes on Brexit 'options' - and hinted at support for a second referendum by saying nothing should be 'off the table'.
The idea would ‘test the will of parliament’ on outcomes such as a Norway-plus and Canada-style arrangements, but the results would be non-binding.
Ms Rudd's position is thought to be shared by Chancellor Philip Hammond, Business Secretary Greg Clark and Justice Secretary David Gauke among others.
However, another faction including Penny Mordaunt and Ms Leadsom are pushing for a 'managed' no deal. That could involve the UK paying the EU for a transition period, but then leaving with no future arrangements agreed.
Ms Mordaunt openly endorsed the idea in a speech to the Carlton Club last night, saying there should be a 'smooth glidepath' to no deal.
However, several Remain-minded ministers including Mr Gauke are ready to quit if the government's goal becomes leaving without an agreement.
In the Commons yesterday, Mrs May gave her strongest warning yet about the potential impact of a no-deal Brexit, saying it would ‘risk the jobs, services and security of the people we serve’.
Treasury minister Liz Truss (left) and Home Secretary Sajid Javid (right) have been pushing for no deal preparations to be escalated
Trade Secretary Liam Fox has been supporting Mrs May's plan but urging her to get tweaks
Amber Rudd (left with Welsh Secretary Alan Cairns today) and Greg Clark (right) have urged a series of votes on Brexit 'options' if Mrs May's Brexit deal is defeated in the Commons
But she said that, with the fate of her deal in the balance, the Government had a duty to step up preparations for the possibility of a no-deal Brexit.
The move came as it emerged Brussels is preparing a ‘basic’ offer to keep flights in the air and money flowing for up to nine months in the event of a no-deal Brexit.
Brexit-backing International Trade Secretary Liam Fox and International Development Secretary Penny Mordaunt will urge Mrs May today to hold a free vote on her deal in the hope of peeling off a significant number of Labour MPs to cancel out the Eurosceptic Tories committed to voting it down.
Defence Secretary Gavin Williamson, Home Secretary Sajid Javid and Treasury Chief Secretary Liz Truss are pushing Mrs May to step up talks with the EU in the hope of securing a concession that will satisfy the Democratic Unionist Party, which props up the minority Tory Government.
Ms Mordaunt last night suggested she would back a ‘managed no-deal’, in which the UK would offer to pay £20billion in return for a 21-month transition period to give time to negotiate a looser trade arrangement.
Mrs May yesterday ruled out a second Brexit referendum, saying it would do ‘irreparable damage’ to Britain, fuelling divisions. EU officials will unveil the full extent of the plan to limit the damage of a ‘cliff-edge’ Brexit tomorrow.
Brexiteers could seize on it as evidence the bloc is prepared to accept a ‘managed no-deal’.
