Taxpayer on the hook as UK scraps Brexit ferry contracts

The British government said Wednesday it was scrapping Brexit-related contracts with ferry companies at a cost to taxpayers of tens of millions of pounds (dollars) after the ferry deals sparked a political and legal firestorm.

"Freight capacity contracts for the summer period are no longer needed and have therefore been terminated," the Department for Transport said.

The ferries were part of the government's planning for a "no-deal" Brexit in case Britain leaves the European Union without an agreement on divorce terms and future ties.

That could cause gridlock at ports by ripping up the trade rulebook and imposing tariffs, customs checks and other barriers between the U.K. and the EU, its biggest trading partner.

But the contracts came under fire earlier this year when it emerged that one firm involved had no ships and no experience running a ferry service.

Transport Secretary Chris Grayling defended the contracts, saying they had been a prudent "insurance policy."