The Prime Minister has ordered emergency measures to be put in place should she return from talks with Brussels without an agreement in the latest sign Britain is preparing for a no-deal with the bloc.
As a result of failing negotiations, ministers have identified eight possible scenarios that could arise should Britain depart the EU empty-handed, The Sun reports.
These include drug, fuel and energy shortages as well as the collapse of the pound, a drop in house prices and businesses relocating.
This comes after Brexiteers mocked the “state of panic” Downing Street appeared to be in over the likely failure of Mrs May’s controversial Chequers plan, with the frenzy dubbed “Project Fear reborn for the umpteenth time”.
A senior No 10 official has been hosting informal dinners with Eurosceptic MPs in a bid to get them behind Mrs May’s plan.
Guests were warned of “an absolute car crash” should Britain leave the EU without a deal on March 29, which could result in a meeting of the Government’s Cobra emergency committee, the official warned.
The warning came from a devout Brexiteer, and as a result was said to have risen some eyebrows among fellow Leave supporters.
He told a recent gathering: “The Remainers might have cried wolf with Project Fear.
“But just think about the story of the boy who cried wolf.
“There actually was a wolf – and in the end he ate the boy.”
Top Brexiteer Jacob Rees-Mogg last said: “It appears that Downing Street is in a state of panic.
“It is the job of government to avoid panic, not create it.
“After Brexit we will maintain control of our own imports.”
He added: “There is no need for shortages so we should remain calm and ensure life carries on as normal – not precipitate a crisis.”
Priti Patel, another Brexiteer, added: “Theresa May has constantly told us that no deal is better than a bad deal.
“Only last week, in an interview with The Sun on Sunday, she said she wasn’t bluffing about that.
“So why all the fresh scaremongering now?”
Recently, negotiations between London and Brussels have reached an impasse due to uncertainty over the future of the Irish border.
But yesterday, Donald Tusk struck an upbeat note today when he was asked about the prospect of a Brexit deal being ratified.
He said: “I have hope close to certainty that we will manage to reach an agreement both on exit and on best possible future relations.
“I hope that it will be possible to avoid major losses on both sides.”
He added: “We will try for it in October and I think there is a chance to have an accord by the end of the year.”