The UK is still not sure what the economic impact of Brexit may be, but the chancellor Phillip Hammond is forecasting how much it will cost.

In today’s Budget, Hammond announced that £3bn has been set aside for Brexit contingency planning.

Hammond said the UK has already invested £700m in preparations ahead of the Brexit date, in March 2019. This brings the total cost of Brexit so far to at least £3.7bn.

He said the Treasury is preparing for every outcome as the Brexit talks are now at a “critical phase”.

The new funds will help to boost businesses that are concerned about what will happen once the UK does leave the European Union in 2019.

However, the question is will this be enough to offset the concerns there are over Brexit.  Since the last budget in the spring, inflation has risen to three percent, its highest level in five years.

As well, the pound is still struggling against the dollar and is now 13 percent lower against the euro.

In addition, rumours are swarming that UK prime minister Theresa May will agree to the Brexit divorce bill, expected to be around £40bn. May has reportedly won the backing of key figures in the cabinet to accept the figures.

The prime minister needs to agree to these terms before Brexit negotiations will move forward. The next round of Brexit talks will begin in December.