The new unit could issue tweets and directly communicate with stakeholders and businesses through factual blogs to counter incorrect news stories. Cabinet Office civil servants will run the new unit which will ensure businesses will not be affected by fake news. The new unit has been put into place after a series of negative stories about a no deal Brexit which has caused chaos among businesses.
Senior government officials have also become infuriated by the BBC after a recent Newsnight programme.
The show claimed 45,000 cows could be killed in Northern Ireland if higher tariffs were applied.
But the Department for Environment Food and Rural Affairs (Defra) slammed the claims, confirming it was not something the Government was planning for in the event of a no deal Brexit.
The outburst resulted in a determined response from the BBC, who added coverage of Britain’s EU departure has so far been impartial.
Michael Gove is concerned about Brexit fake news
He is in charge of Britain’s no deal preparation plans
A spokesman said: “We’ll continue to cover Brexit impartially.
“Our report was extremely clear that the industry figures who spoke to Newsnight were warning that a cull of dairy cows could happen in Northern Ireland as a result of higher tariffs on milk due to a no deal Brexit, not that there are actually plans in place to do so.”
Speaking to the Telegraph, an insider said: “The purpose is to ensure the public and businesses are not being alarmed by scare stories or falsehoods.
“It’s important that people prepare for no deal based on actual facts.”
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As the new Chancellor of the Duchy of Lancaster, Mr Gove has been tasked with coordinating Britain’s withdrawal from the EU and sees media as a key way to tackle this.
Brexiteer Tories have praised the idea for a new media unit, with European Research group vice-chairman Mark Francois welcoming the move.
He told The Telegraph: “I recommend they rapidly establish three outstations of this unit – one at the BBC’s New Broadcasting House, one in the Bank of England and one in Philip Hammond’s constituency.”
Just days ago, Tory MP John Redwood slammed the BBC for offering Project Fear predictions and debating the same arguments.
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The Wokingham MP then criticised Treasury chiefs for offering false forecasts on unemployment rates and share prices after a leave vote back in 2016, which he claims tuned out to be incorrect.
A Cabinet Office source said: “We are leaving the EU on the 31st October whatever happens. While we want a deal, we have stepped up preparations for no deal in case the EU continue to refuse to negotiate a new deal.
“While no deal may present some challenges, scare stories and misinformation are designed to obstruct democracy and prevent us leaving.
“The new Cabinet office rebuttal unit will work to combat fake news and fearmongering to help ensure businesses and citizens are Brexit ready for 31st October.
The new unit also comes just days after Britain recorded a fall in their GDP levels for the first time since 2012.
Experts warned the shocking figures were below initial forecasts and placed the country on the brink of recession.
But Chancellor Sajid Javid denied the claims, saying the reason for “volatility” was uncertainty about Brexit, which could be resolved by leaving the EU on October 31.
Asked if the growth figures signalled the UK was heading towards a recession, Mr Javid told Channel 4 News: “I don’t accept that for a single second.
Brexit supporter Mark Francois has backed the move
“I’m not expecting a recession, there is not a single leading forecaster out there that is expecting a recession, the independent Bank of England is not expecting a recession.
“And you know why they’re not? It’s because the fundamentals are strong, that’s the first thing.
“Our economy since 2010, because of the hard work of the British people, has grown by 19% and we have more people employed than ever before.”
He added: “The reason we are seeing volatility in numbers – higher results in the first quarter, lower in the second quarter – the reason we’re seeing this is because businesses are trying to work around Brexit and there’s too much uncertainty.
“The way to end that uncertainty is to make sure that we leave as planned, which is (on) October 31.”