Government to consider ‘bailout plans’ for businesses in event of no-deal Brexit

Prime Minister Boris Johnson. Photograph: Julian Simmonds/The Daily Telegraph/PA Wire. - Credit: PA

The government is looking at plans to ‘bailout’ businesses in the event of a no-deal Brexit.

The Times reports that the government has drawn up a list of companies – including some of those in the construction and manufacturing sectors – which it believes could be financially exposed in any volatility following the UK leaving the EU without a deal.

Boris Johnson’s Brexit “war cabinet” is expected to discuss the bailout plans, known as Operation Kingfisher, next week.

Michael Gove confirmed the plans in a visit to Northern Ireland.

“It will be there so any businesses that may be temporarily affected by changes of circumstances that are related to Brexit can be supported… so that fundamentally viable businesses that may have the occasional cash flow or other issue can be supported.

“It is also the case that there will be a number of businesses that will see opportunities, both in the run up to, and immediately after, October 31 as well.

“While it’s absolutely right the government looks at those who may experience some bumps in the road initially, and see how we can help them through it, it’s also my aim to make sure that we can maximise the opportunities for every sector of the economy as well.”

It comes as GDP figures revealed the economy shrank for the first time since 2012, suggesting the UK could be headed for a recession, something the chancellor has denied.