BORIS’S Brexit Britain is on the verge of recession, the Bank of England has warned.

Publishing its latest inflation report, the bank’s nine-member Monetary Policy Committee (MPC) said there was now a one in three chance of negative growth by the start of next year.

The warning from the bankers came as Chancellor Sajid Javid announced a £2.1 billion top up to his No-Deal Brexit preparation fund.

Both of those announcements helped send the pound plummeting to its lowest level in years.

Sterling crashed below $1.21 against the US dollar yesterday for the first time since January 2017.

READ MORE: Mark Carney warns firms to prepare for climate change

Against the euro the pound fell 0.01% to €1.0978. Holidaymakers will likely notice the shrinking value immediately. Travellers have been getting less than a euro to the pound at airports.

But in the longer run the weak pound will lead to a hike in the price of imports, from foodstuffs to electronic gadgets.

Should Britain crash out without a deal on Halloween, the bank warned of an “instantaneous shock” which would see the pound fall even further along with a rise in inflation and a slowing of GDP.

The Bank has slashed its growth forecast to 1.3% for both this year and next, down from the 1.5% and 1.6%.

Even if the UK agrees a deal the bank said interest rates would need to rise to combat increasing inflation.

Javid insisted his £2.1bn pledge would mean the UK is ready to leave the European Union “deal or No Deal”.

The National: Chancellor Sajid Javid has insisted the UK will be prepared for a No DealChancellor Sajid Javid has insisted the UK will be prepared for a No Deal

It includes £344 million for border and customs operations, £434m to ensure vital medicines are available, £108m for business support, and £138m for a public information campaign.

The Chancellor said: “We want to get a good deal that abolishes the anti-democratic backstop. But if we can’t get a good deal, we’ll have to leave without one.

“This additional £2.1bn will ensure we are ready to leave on 31 October – deal or No Deal.”

Public Accounts Committee (PAC) chair Meg Hillier said the spending would be investigated. She said: “A lot of this money will have already been committed. But it’s practically impossible to recruit, train and deploy Border Force staff in 91 days.

“The PAC will continue to look beyond the bluster at the facts, the delivery and follow how taxpayers money is spent.”

Shadow chancellor John McDonnell described the vow as “an appalling waste of taxpayers’ cash”.

The SNP’s Europe spokesman Stephen Gethins said the cash was a “shameful waste of money”.

“Rather than working to avert a catastrophic No-Deal exit, Boris Johnson is accelerating over the economic cliff-edge.

“People in Scotland deserve the choice of a better future than the Brexit Britain being imposed on us. It’s clearer than ever that the only way to properly protect Scotland’s interests is by becoming an equal and independent European country.”

READ MORE: Number 10 installs Brexit countdown clock costing around £500

Paul Johnson, director of the Institute for Fiscal Studies, said the £2.1bn was a relatively small sum compared to what a No-Deal Brexit could cost the economy.

“A couple of billion is rather little compared with the tens of billions we would probably lose as a result of a smaller economy,” he told the BBC.