Paschal Donohoe says no new budget regardless of Brexit

The potential December British election offer is likely to prove key to convincing French president Emmanuel Macron to agree to a three month Brexit deadline extension until January 31.

This is because Mr Macron has made it clear he will only back another delay - which must be unanimously agreed by EU member states - if Britain outlines plans for either an election or referendum to drag the existing Brexit deal over the line.

If an election is called, it is predicted Mr Johnson may win enough support to end his links to the DUP, making it more like a Brexit deal could pass through the House of Commons.

This would in turn make Ireland's no deal Brexit plans, including the worst case scenario budget outlined earlier this month, obsolete.

Speaking to reporters at a tax conference in Dublin, Finance Minister Paschal Donohoe acknowledged the potential developments.

However, he added that regardless of what happens next, he and the Government will not introduce a new giveaway budget to replace the one already passing through the Dáil.

"There will not be another budget, there will be a single budget which is actually in the process of going through the Oireachtas at the moment.

"[The no deal Brexit money] will not be used for any other reason or role, the reason for that is I would have to borrow that money for the State.

"If that money is not needed to cope with the consequences of a no deal Brexit, I will not be using it for any other purpose," he said.

Asked about the latest Brexit developments in Britain, Mr Donohoe said this is up to the UK.

However, he added that "the overriding priority of the Irish Government is to protect the [Brexit] agreement that we have"