The Treasury will put money aside for extra resources needed in the event of the UK crashing out of the EU without a deal.

Chief Minister Howard Quayle said: ’We have to make sure we are as well prepared as possible. The Treasury Minister will be putting money aside should there be a hard Brexit.’

Mr Quayle said he still hoped common sense would prevail and a negotiated agreement will be reached between Westminster and the EU.

He said: ’It would be unhelpful to speculate on the outcome and potential consequences of the Brexit negotiations. However, it would also be irresponsible for us to ignore the possibility of a no-deal scenario.’

The Chief Minister said that realistically, the UK and the EU had until October-November to reach an agreement.

He said: ’Everyone hopes a deal can be negotiated. It would be far better for business if we don’t have a hard Brexit. There is a lot of sabre rattling.’

The UK government last week published a series of technical notices setting out the economic and social consequences of the UK leaving the EU without a negotiated settlement.

They include advice for UK citizens, businesses and public bodies. More notices will follow in September.

outcome

Whatever the outcome of the Brexit talks, the island will retain its Customs arrangements with the UK, and will continue to be in the Common Travel Area with England, Wales, Scotland, Northern Ireland and the Irish Republic.

But a no-deal outcome would result in the need for border controls between the Isle of Man and the Irish Republic.

Extra manpower would be needed to carry out the customs checks at the ports and on packages and parcels arriving through the post.

Mr Quayle said his main focus was to protect our current arrangements for freedom of movement of people and the freedom of trade in agricultural, fishing and manufactured goods.

He said that Theresa May’s Chequers plan would offer just that.

Mr Quayle claimed there would be no effect on our financial services as the Isle of Man already has third country status.

We would be able to take advantage of anything that the UK negotiated when it too has third country status for financial services, he said.

Mr Quayle said that unlike Guernsey and Jersey, the Isle of Man is an associated member of the World Trade Organisation, through the UK.