Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team Philip Hammond allocates a further £3 billion for Whitehall’s Brexit planning Philip Hammond has announced that the government will set aside £3bn for Brexit, adding to a £700m sum already allocated. The chancellor said he is committed to ensuring that the country is “prepared for every possible outcome”. Eurosceptic MPs have been pressing the government to start making plans for a possible “no deal” outcome, and will welcome the funding commitment outlined today. However, Hammond did not outline how the money would be spent. Brexit secretary David Davis said this week that he is firmly in favour of striking a comprehensive free trade deal with the European Union, but that it would be remiss of the government not to prepare for every possible outcome. – City A.M. Britain will use Brexit money to prepare for all outcomes – Reuters ‘Lost chance’ to boost business before Brexit – Times (£) Promise of £3bn to prepare for ‘no deal’ Brexit heals wounds – Times (£) A Brexit Budget – Robert Peston for ITV News Ignore these prophets of economic doom – Iain Martin for the Times (£) Finally, an upbeat and ambitious Budget from Philip Hammond – Telegraph editorial (£) > David Paton on BrexitCentral today: Cast off the gloomy Treasury forecasts and seize the opportunities of Brexit Wind ‘blowing in the right direction’ for Brexit progress at December’s European Council… British and EU negotiators are moving closer to thrashing out a deal over the so-called ‘Brexit bill’ as optimism rises on both sides of a deal in December that will open the door to trade talks, senior EU and UK sources have both told The Telegraph. While sources on both sides confirmed “we are not there yet” the contours of a deal over the so-called Brexit bill appear to be emerging, in which the UK would implicitly commit at least €40bn – and potentially more – but without agreeing to a figure in public. – Telegraph …as pro-EU think-tank rates chances of a Brexit breakthrough at the crunch summit as high as 70 per cent… The chances of a Brexit breakthrough at a crunch summit in December are as high as 70 percent, according to an influential think tank, as Prime Minister Theresa May gets increasingly involved in the process. Charles Grant, the director of the Centre for European Reform, which has a track record of predicting the next steps in Brexit talks, said the perception in Brussels of the British team has improved, and with it the chances of a deal to allow negotiations to move from separation to trade. – Bloomberg Sweden wants Brexit progress in December, but UK must move on money – Reuters …while Michel Barnier takes aim at Britain’s budget rebate in Brexit talks… In his public statements, Barnier repeatedly and pointedly pegs the U.K.’s financial obligations at 14 percent of the bloc’s budget. That reflects Britain’s share before its rebate is applied, and is well above the 12.5 to 13 percent share that the U.K. actually pays into the EU’s coffers. If the EU’s chief negotiator gets his way, then it could mean Britain having to fork out at least €10 billion more to secure a Brexit transition deal. But any hint that the U.K. will have to pay more to Brussels than under the historic rebate scheme is certain to further antagonize Brexiteers who attach a near-religious significance to the financial arrangement. – Politico …and the European Commission gets a glimpse of post-Brexit EU budget horrors The European Commission has started to look into the impact that Brexit will have on the next EU budget plan — and wants to show the remaining countries that deep cuts are a bad idea. Cutting the post-Brexit budget by a sum approximately equivalent to the U.K.’s current share (of 12.5 percent, or 14 percent if you don’t take the rebate into account) would mean halting funding for Western European countries from the EU’s regional aid program, according to a study carried out by the Commission’s regional affairs department (DG Regio). Under such a scenario, the EU would be able to provide “support for less developed regions only,” says the study, obtained by POLITICO. That means only the poorest countries in the EU, and regions with a GDP per capita of less than 75 percent of the EU average, would continue to get EU funding. – Politico Jeremy Corbyn ‘a blast from the past’ over Brexit, says Theresa May Theresa May branded Jeremy Corbyn a “blast from the past” as she claimed she remains optimistic over Brexit. The Prime Minister also urged the Labour leader to “get his own act together” over his party’s position on Britain’s withdrawal from the EU. Mr Corbyn countered by labelling the Government’s approach a “shambles” as Brexit dominated the pair’s exchanges at Prime Minister’s Questions. Mr Corbyn urged Mrs May to clarify how the Irish border will operate post-Brexit and accused the Government of seeking to weaken workers’ rights and environmental protections. He added: “Isn’t the truth this Government has no energy, no agreed plan and no strategy to deliver a good Brexit for Britain?” – Belfast Telegraph Jeremy Corbyn: Brexit is a ‘shambles’ – The Herald Amber Rudd apologises after missing close Brexit Bill vote Amber Rudd has been forced to apologise after she missed a crucial Brexit vote in the Commons last night [Tuesday]. The Home Secretary is understood to have been on the phone discussing a National Crime Agency issue as MPs voted on an amendment tabled by Jeremy Corbyn. She voted on four amendments to the Government’s flagship EU Withdrawal Bill on Tuesday evening, but was absent for the closest division, which concerned the retention of the EU Charter of Fundamental Rights. – Telegraph Theresa May promises to further improve animal welfare standards post-Brexit Theresa May has promised to “maintain and improve” animal welfare standards in the UK after Brexit. MPs voted this week not to write part of an EU treaty recognising animals as “sentient beings” that feel emotion and pain into the EU Withdrawal Bill. But speaking at Prime Minister’s Questions, Mrs May said the Animal Welfare Act 2006 protected animals. She said more action was being taken on animal welfare, such as plans for tougher sentences for animal cruelty. She also highlighted government proposals to introduce mandatory CCTV in slaughterhouses, ban micro beads and tackling the ivory trade. – BBC News MPs hog social media as they deny voting animals are not sentient – Guardian Gibraltar heading for abrupt exit from single market, says Spain Gibraltar is heading for an abrupt exit from the single market without the benefit of any transition deal, according to senior Spanish government sources… The EU shocked Downing Street in April when it effectively backed Spain in the centuries-old territorial dispute. In guidelines outlining their approach to the Brexit negotiations, the 27 member states insisted Gibraltar would be outside any future trade deal with the UK unless an agreement was reached in advance with Madrid over its future status… “I think the situation with Gibraltar is crystal clear,” the source said. “Gibraltar became associated with the EU project because of their dependence in the UK. This is going to stay until March 2019. In 2019 when the UK leaves the EU, Gibraltar will leave with the UK.” – Guardian Irish foreign minister rejects DUP’s ‘reckless’ Brexit claims The Irish foreign minister has rejected claims his government is being reckless with Northern Ireland over Brexit. Simon Coveney said: “We are asking the hard questions and unfortunately we are not getting credible answers.” He said this was why “some people seem to be uncomfortable”. Mr Coveney would not respond directly to complaints by DUP leader Arlene Foster, but said Dublin had been consistent on Brexit, stressing that its position had not changed. On Tuesday, Mrs Foster said Irish Prime Minister Leo Varadkar “should know better” than to “play around” with Northern Ireland over Brexit. – BBC News The City’s industry body demands the government do more to boost legal services post-Brexit TheCityUK, the Square Mile’s financial services industry body, has today called on the government to do more to protect the UK’s legal industry post-Brexit. In a new report, TheCityUK revealed that the UK legal sector’s trade surplus – or how much its exports exceeded its imports – amounted to £4bn in 2016. Total revenue generated by legal activities in the UK last year was £31.5bn. – City A.M. Brussels says European Capital of Culture can’t be in the UK The European Commission told the U.K. government a British city cannot be a European Capital of Culture in 2023 — even though the scheme is open to countries that aren’t in the bloc. In a letter seen by POLITICO, the Commission says the British application should be “discontinued” because of the Brexit vote. After Brexit, “the participation of the United Kingdom in the European Capital of Culture action will not be possible,” says the letter, written by Martine Reicherts, director-general in the Commission’s education and culture department. – Politico Exports drive UK car output higher in October British car production rose by an annual 3.5 percent in October as an increase in demand from abroad outweighed a decline in output for domestic buyers, an industry body said on Thursday. Factories churned out 157,056 cars last month, with exports rising 5 percent as domestic demand fell 2.9 percent, according to data from the Society of Motor Manufacturers and Traders (SMMT). – Reuters Asa Bennett: Philip Hammond hopes £3 billion will show Brexiteers he means business The Budget was a chance for Philip Hammond to reset his relationship with the Brexiteers. To mend fences and reassure them that he was on board with Britain’s departure. Some may think that is hard for him to do, but it’s worth remembering that there was a time when he astounded people with his level of Euroscepticism. As Foreign Secretary, he informed the BBC back in 2014 that Britain’s terms of membership of the European Union were “simply not acceptable”, and warned that he backed leaving “if there is no change at all in the way Europe is governed”. Open Europe’s Mats Persson anointed him the “most Eurosceptic Tory Foreign Secretary since Viscount Halifax”, the man who declared war on Germany in 1939. – Asa Bennett for the Telegraph (£) Gerard Lyons: Hammond failing to fully embrace the opportunities Brexit could bring Philip Hammond began his speech by mentioning there were opportunities from Brexit. But then he failed to spell them out. He and The Treasury still convey the image of making the best of a bad job. I would like to have heard far more about the vision that lies ahead. Admittedly the Chancellor is putting an extra £3 billion aside to prepare for Brexit. This should have been done sooner and is on top of £700 million already spent. – Gerard Lyons for NetWealth John Longworth: Hammond had a chance to excite the nation about Brexit, but he blew it While the Chancellor has at last acknowledged the need to fund and prepare for Brexit by allocating £3 billion, he has not grasped the immediate opportunity that Brexit provides for the economy. Contrary to the pre-budget assertions of many commentators that the Chancellor had little room for manoeuvre (which may be true in the very near term), the prospect of Brexit actually provided him with the scope to define the long-term direction of travel of the economy, in fact for the best part of the current Parliament. – John Longworth for the Telegraph (£) James Forsyth: The Irish stance against Brexit is a dangerous gamble Inside government, there is mounting anger at the way that the Taoiseach and his team are behaving. One normally mild-mannered cabinet member tells me that Varadkar is ‘playing with fire’. Another complains that the Irish foreign minister Simon Coveney has his own leadership ambitions, so is making the situation even worse. Dublin is taking a huge risk with its hardline approach. No decent UK government could agree to what it is demanding. It is therefore making the collapse of the Brexit talks more likely. If these negotiations do fail, the effect on Ireland’s economy would be dire. As one government source warns: ‘If we crash out, they crash even further.’ – James Forsyth for the Spectator Rod Liddle: With Angela Merkel and the rest of Europe in crisis, it’s time for Britain to get tough I sometimes wonder if we will have a chance to leave the European Union before the European Union ceases to exist. It would be a shame if that happened, after all the trouble we went to with our referendum. And these endless negotiations. There’s still an outside chance of that happening. Europe is deep in crisis. The Germans have just realised that Angela Merkel is about as much use as a bratwurst in a mosque. They turned away from her party at the last election to the far right and the far left. She can’t form a coalition. There will have to be new elections — expect the right-wing party, Alternative for Deutschland to prosper. This is Merkel’s fault for foisting on her country — and Europe — an immigration policy which almost everybody hates. – Rod Liddle for the Sun Brian Monteith: Don’t let schadenfreude over Angela Merkel’s plight derail Brexit Following the breakdown in talks, there is now a very real prospect of a fresh election in Germany, as all the parties except Angela Merkel’s CDU/CSU grouping smell an opportunity to make gains at her expense. If they hold out and refuse to form a coalition government then an election it must be. Meanwhile, Merkel will remain Chancellor, but German power will be weakened, if only temporarily. Does this moment of confusion for the EU’s most influential member and largest economy present an opportunity for the UK in the Brexit negotiations? Yes and no. – Brian Monteith for City A.M. Brexit in brief As a statement of the UK’s preparedness for Brexit, Hammond’s Budget fell short – George Magnus for Prospect Leave.EU and Arron Banks – the Brexiteers that the Remain campaign loved – Daniel Hannan MEP for ConservativeHome Gilbert & George come out as Brexiteers – Guido Fawkes