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The plan, dubbed “Project After” by some ministers, is being marshalled by Mark Sedwill, who as cabinet secretary is head of the civil service. It has brought together senior figures from the Cabinet Office, the Treasury, the business department and the international trade department, in close contact with the Bank of England.
Although the project has been mentioned at cabinet meetings in recent weeks its existence has not been made public. “It’s basically a Doomsday list of economic levers we could pull if the economy is about to tank,” said one Whitehall figure. “Sedwill has been working on it since the summer.”
The group is looking at other medium-term scenarios alongside a no-deal Brexit. While some ideas are radical — such as slashing tariffs and cutting taxes — others are more conventional, such as supply-side reform and export support.
Officials are trying to eliminate options that could prove economically counter-productive. Some worry that slashing taxes and increasing public spending could lead inflation to spike, damaging consumer confidence, raising interest rates and ultimately increasing the cost of Britain’s debt servicing. [...]
According to some Whitehall officials, Project After started life two years ago as an initiative within the Department for International Trade. But since then it has expanded into a much broader effort involving other departments and run from the centre.
“The fact that Project After now sits with Sedwill means it must be a priority for the prime minister,” said Mr Owen. [...]
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