Budget 2020: Excess of €1 billion provided to respond to a No Deal Brexit
News08 October 2019
Government provides in excess of €1 billion in Budget 2020 to respond to a No Deal Brexit
The Government is making more than €1 billion available in Budget 2020 to be spent in the event of a No Deal Brexit. The funding will be used to protect Ireland from the worst effects of a No Deal, so we can help the people and businesses most affected, if and when they need it. This is on top of existing grants and loans which are already available for business and agriculture, and is in addition to ongoing Government expenditure on Brexit preparedness.
The Government has been actively preparing for Brexit since before the Referendum in 2016.
In December 2018, the Government published a Contingency Action Plan for a No Deal Brexit, setting out actions which were being taken across a wide range of areas to prepare for a No Deal Brexit in advance of the March and April 2019 deadlines. In July 2019, the Government published an Updated Contingency Action Plan which outlined the further work across all sectors to further strengthen and refine preparations in the lead up to a potential no deal Brexit on 31 October.
Details of the Budget 2020 package were outlined by the Tánaiste and Minister for Foreign Affairs and Trade, Simon Coveney TD, and a number of his ministerial colleagues at a special Brexit press conference in Government Buildings this afternoon.
Speaking this afternoon the Tánaiste said:
"Brexit remains the number one threat to the Irish economy, jobs and livelihoods. Whilst the problem is not of our making, the Government must continue to prepare for both a deal and a no deal outcome. Budget 2020 protects Ireland from the worst of No Deal and builds on the hundreds of millions that have gone into Brexit contingency in Budget 2019 and Budget 2018."
The Budget 2020 package includes:
- €650 million to support the agriculture, enterprise and tourism sectors and to assist the workers and regions which are most affected. This funding will be released in a series of waves, rather than all at once, to ensure an effective response to the wide range of possible Brexit impacts, which may take time to fully materialise.
- Of this €650 million, €220 million will be immediately deployed in the event of a No Deal Brexit with €110m for agriculture supports and €110m for enterprise supports. Second and subsequent waves will be released as the economic impact on particular sectors and regions becomes clear in the initial weeks and months.
- €40 million will be available to support the tourism sector, targeting the worst affected regions, as well as new marketing initiatives, on top of additional immediate funding of €7m in 2019.
- €365 million is also being provided for extra Social Protection expenditure on the Live Register and related schemes, while €45 million is provided for increased supports for workers in adversely affected parts of the country – for example the border region – should that prove necessary.
These funding streams will lead to significant additional spend at local level in the areas most affected by Brexit. The scale of the contingency funding will also allow further specific initiatives targeting the most affected parts of the country.
The Government will continue to work with trade unions and employer organisations to finalise these measures to support both companies and workers in the event of a No Deal Brexit.
In addition, €355 million will be spent on on-going Brexit preparedness, compliance and activation supports. Of this, €185 million in current and capital funding will be used to ensure compliance conditions are met and trade disruption is minimised, including extensive investment in ports and airports infrastructure for a no deal Brexit, as well as funding for extra staff and other costs. A further €170 million will be spent on measures across a number of sectors to ensure that the State and economy are well positioned ahead of Brexit. These includes Brexit Responses and Global Ireland, assistance to enterprise, tourism supports, farm sector and competiveness supports.
Assistance will also be available at the EU level for Member States most affected by Brexit. The Government is working in Brussels to seek additional financial support in the event of a no deal Brexit, including exceptional aid for Ireland’s agri-food sector and on other possible supports, such as through the European Globalisation Fund and the Solidarity Fund.
Furthermore, there will be an increase of nearly €800 million in infrastructure investment in 2020 bringing total infrastructure spending to €8.1billion, as part of Project Ireland 2040. This investment in major projects like schools, roads and hospitals will help to create economic activity and jobs across the country.
The press release can be read in full here.