In preparing Budget 2020, I set out that a disorderly Brexit was the baseline scenario for budget planning purposes, and therefore a Budget deficit was in prospect.
On that basis, I decided that there would be no transfer of €500 million from the Exchequer in 2019 to the Rainy Day Fund.
Since I published Budget 2020 on 8th October, an extension of the EU’s deadline for withdrawal to 31st January 2020 has been agreed. As such, the risk of the UK departing the EU without a deal has been averted for now. However, the ultimate outcome is still very uncertain and a disorderly Brexit is still possible. Given this uncertainty, the Budget position has not changed.
The €500 million will remain as Exchequer cash balances. It will therefore be used to fund planned expenditure commitments and improve the Exchequer funding requirement for 2019.