(Bloomberg) -- Theresa May’s Cabinet agreed to step up plans for a no-deal Brexit as the prime minister tries to convince members of Parliament to back her divorce agreement.

Key Developments:

* Cabinet agrees to step up no-deal planning, allocate funds* Government tells businesses to prepare for the worst* Cabinet is still backing May’s plan, her spokesman says* EU rules out mini-deals to help cushion the blow

Cabinet Agrees to Implement No-Deal Plans in Full (1:40 p.m.)

The Cabinet, which met for three hours, agreed to implement its no-deal plans "in full," with just three months to go until Brexit day, according to May’s spokesman James Slack.

There will be:

  • More information for citizens in coming weeks
  • Tax office HMRC will issue guidance pack to businesses this week to enable preparation for border changes
  • Money released for no-deal preparations "shortly." Of the 4 billion pounds that’s been set aside, 2 billion pounds will be released

The Cabinet also agreed that getting May’s deal passed was the priority. If there is no deal, legislation will be required, Slack says. That’s a chance for Parliament -- where the majority wants to avoid the cliff-edge scenario -- to block it.

Government ramps up no-deal Brexit planning (1:23 p.m.)

The Cabinet agreed to increase its planning for a no-deal Brexit with only three months to go before the U.K. leaves the bloc. The government is also telling businesses to do the same, Brexit Secretary Stephen Barclay tells Sky News.

However, the priority remains to get May’s deal through Parliament, he said.

Earlier:

May Says Brexit Talks to Go Into 2019 as She Fights for Deal EU Rules Out ‘Managed No-Deal’ as Bloc Boosts Brexit PlansBrexit Bulletin: Unhappy New YearBrexit’s Angry Bellwether Town Senses Shift Toward Staying in EU

To contact the reporters on this story: Jessica Shankleman in London at jshankleman@bloomberg.net;Kitty Donaldson in London at kdonaldson1@bloomberg.net;Alex Morales in London at amorales2@bloomberg.net

To contact the editors responsible for this story: Flavia Krause-Jackson at fjackson@bloomberg.net, Stuart Biggs, Emma Ross-Thomas

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