If no progress is made on a transition deal by Christmas, the Chancellor is planning to release the extra cash to try and get ready in the worst case scenario.
Mrs May had hoped to kick-start talks with the EU with her Florence speech, but officials still decided to vote against starting trade talks this month.
MEPs and the EU said there was not “sufficient progress” made in talks with Britain – and stressed that discussions on money, the issues of citizens rights, and the Northern Ireland border, needed more work.
And reports yesterday suggested that France and Germany would refuse to talk about the next stage of Brexit – including discussing a transitional deal – until all issues of money were settled.
Mrs May said in her conference speech last week that the Government were preparing for every eventuality when we finally quit the EU in March 2019.
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