By David Hughes

A BREXIT war chest of at least £3 billion has been set aside to prepare the UK for the prospect of no deal with Brussels.

Eurosceptics have put pressure on Chancellor Philip Hammond to commit money to preparations for a “no deal” scenario to show the European Union that the UK is serious about Theresa May’s threat to walk away from talks if the offer from Brussels is unacceptable.

At his Budget, Mr Hammond said Brussels should not “doubt our resolve” as he put money aside to ensure the country is “prepared for every possible outcome”.

Extra investment is likely to be required in customs infrastructure and changing regulators as a result of leaving the EU, with a no-deal scenario likely to mean more spending than maintaining many current rules.

The Chancellor’s actions were criticised by Liberal Democrat leader Sir Vince Cable, who said the money was “disappearing down a Brexit black hole”.

Mr Hammond said securing progress on a trade deal would be “one of the biggest boosts we can provide to businesses and families”.

He said almost £700 million had been invested in Brexit preparations and he was setting aside £3bn more over the next two years, adding: “And I stand ready to allocate further sums if and when needed. No one should doubt our resolve.”

Sir Vince said: “It tells you everything you need to know about this Government’s priorities that more funding has been found for Brexit than for our struggling NHS, schools and police. Money that could have been invested hiring thousands of teachers and police officers is instead going to pay for a Tory Hard Brexit.

“Meanwhile, the Government’s strategy remains so vague we still don’t know what the final damage to our economy and living standards will be.”

“This underlines why the British people must be able to choose at the end of this process whether to accept the final deal or stay in the EU.”