The Minister for Finance is warning that a no deal Brexit will “radically reset expectations” for the upcoming budget.

Paschal Donohoe has already set out two budget strategies for Budget2020 – based on whether the UK secures a deal or crashes out of the EU.

On Newstalk Breakfast this morning, he said the no deal risk was rising and warned that it will soon be time to decide which way to go.

“If that risk does develop and if we believe it is likely, we will have to radically reset expectations regarding what this and future budgets will be able to do,” he said.

In the Summer Economic Statement, Minister Donohoe said that if the UK secures a deal, the budget will include the promised €700m increase in capital spending.

Should it crash out however, the Government will be forced to borrow heavily to deliver on that spending pledge, while also increasing its spend on social welfare and supports for industries that will suffer.

“We are working hard on both scenarios but we will be making – and will be approaching a point soon enough where we will need to make – a decision about what will be the central case scenario,” he said.

“As the Taoiseach said yesterday, there is still time available.

“It is not inevitable but my view is that it is a growing and material risk.”

More follows ...