'She has my number': Varadkar responds to Foster's claim govt refusing to engage with Britain

Taoiseach Leo Varadkar has warned Ireland and Britain "should be afraid of a no deal Brexit" after admitting the scenario could force him to scrap plans to cut income tax in the autumn budget.

Mr Varadkar hit back at British prime minister Boris Johnson and DUP leader Arlene Foster's claims he is taking part in "project fear", and urged opponents to read the Good Friday agreement.

At the launch of a new multi-million euro public-private housing project in Kilkenny city, Mr Varadkar said despite Brexiteer claims, the reality is a no-deal Brexit is bad for everyone.

Underlining the threat posed by the deepening stand-off between Mr Johnson and the EU, the Taoiseach said no one should be under any illusions of what a crash out situation will mean.

Asked about claims by DUP leader Ms Foster in Stormont on Wednesday that the Irish Government is failing to "engage" with Britain and is taking part in "project fear mark two", Mr Varadkar said: "In terms of engagement, I have never refused a meeting request from the DUP and never refused a phone call from Arlene either. She has my number.

"I wouldn't accept that criticism at all. What I would point out though that when it comes to negotiations on Brexit, they happen between the European Union, including Ireland on the one hand, and the UK government on the other.

"I have spoken to the new prime minister by phone and I have invited him to come to Dublin to talk about these matters some more without any pre-conditions so that's really an invitation for him to decide on.

"In terms of fear, I think we should be afraid of a no-deal Brexit.

"A no-deal Brexit would have very serious impacts on the economy, north and south, and on Britain. It could have security implications as well and it could have constitutional implications.

"It's something that we have to prepare for nonetheless. It is something we should be afraid about."

Asked later if a no-deal Brexit could impact on his budget plans and whether his plans to cut income tax could be scrapped, Mr Varadkar added: "This budget is going to be characterised by Brexit and by climate action... The budget hasn't been written yet, but obviously Brexit is a game changer in terms of everything.

Certainly a no-deal Brexit would be a game-changer in terms of budget plans, but that doesn't mean the five year [economic] plan doesn't stand.

During the same press conference Mr Varadkar said he has "re-read" the Good Friday agreement in recent days, describing the 1998 deal as a "masterpiece" which is "still so relevant today".

He also said he would "encourage anyone holding high office in the UK to read it and absorb it".

The Taoiseach also subtly criticised new British prime minister Mr Johnson for meeting privately with the DUP on Tuesday night, stressing London must be "impartial" on issues relating to Northern Ireland.

Mr Varadkar rejected recent British media criticism of his Brexit role, saying it is "not the first time" it has happened.

Asked about criticism over his "rhetoric", he said: "The rhetoric isn't coming from us."