2020 Budget to be drafted on assumption of no-deal Brexit 1 week ago

2020 Budget to be drafted on assumption of no-deal Brexit

The details of Budget 2020 will be announced on 8 October.

The 2020 Budget is expected to be drafted based on the assumption of a no-deal Brexit.

Minister for Finance Paschal Donohoe will inform his cabinet colleagues on Wednesday that Budget 2020 will be based on the assumption that the UK will leave the EU without a deal, according to RTÉ.

This decision from the government is not unexpected, but it is one of the most significant steps yet with regards to planning for a no-deal Brexit.

The Irish Fiscal Advisory Council (IFAC) have also urged the Government not to rely on surges in corporation tax to cover spending overruns.

In their pre-budget statement, the IFAC said that "the international economic outlook has deteriorated in recent months. While the situation is volatile and evolving, risks of a hard Brexit are high."

It continued: "The Government might need to cut spending or raise taxes to prevent debt ratios from rising. Measures to deal with the costs of a hard Brexit should, however, be accommodated as far as possible."

You can read the IFAC statement in full here.

Meanwhile, also in the world of Brexit, UK Prime Minister Boris Johnson is said to be considering building a bridge between Scotland and Northern Ireland as a way around placing an alternative border in the Irish Sea.