Concerns over Brexit readiness
Concerns over Government preparation
POLITICS: An influential MPs’ committee has voiced “grave concerns” over the complacency of the Government’s Department for Business in preparing for Brexit.
The department, headed by Business Secretary Greg Clark, is one of the parts of the Government most deeply affected by EU withdrawal.
AN INFLUENTIAL MPs’ committee has voiced “grave concerns” over the complacency of the Government’s Department for Business in preparing for Brexit.
The department, headed by Business Secretary Greg Clark, is one of the parts of the Government most deeply affected by EU withdrawal, with responsibility for around a fifth of the work streams requiring action.
But the chairwoman of the Commons Public Accounts Committee Meg Hillier said today that it appeared to be “operating in a parallel universe where urgency is an abstract concept”.
With about a year to go to Brexit day on March 29, 2019, the department had not begun procurement for at least 12 essential IT systems needed to replace EU databases for projects such as the emissions trading scheme, said the committee in a report.
And it had made “virtually no attempt” to reorder existing priorities to free up time and staff for the massive job of ensuring a smooth Brexit.
The committee gave Middlesbrough-born Mr Clark a twomonth deadline to confirm which programmes can be stopped, paused or slowed down to make way for Brexit priorities.
Branding the delay in starting work on new IT systems “extraordinary”, the cross-party group said it “doubted the realism” of the department’s plans and was “extremely sceptical” that they would be delivered on time.
The department was “relying too heavily” on the proposed 21-month transition period which would delay the introduction of new arrangements until 2021, said the report, which stressed that new systems may be needed as early as next March if talks fail.
The Department for Business, Energy and Industrial Strategy (BEIS) was given an extra £35m by the Treasury for Brexit preparations in 2017/18 and has recruited 305 of the 350 additional staff it believes are needed.
But the committee said it was “concerned” that the new recruits “lack the required level of experience and expertise”.
Many of those hired are policy experts, leaving vital posts unfilled in areas like digital, where competition for specialist staff is fierce, the report warned.
It also repeated concerns about the Government’s ability to get 1,000 pieces of secondary legislation – including 150 from BEIS – through Parliament in time for Brexit.
And it criticised BEIS for a lack of transparency about the work it is undertaking.
Ms Hillier said: “The Department for Business, Energy and Industrial Strategy appears to be operating in a parallel universe where urgency is an abstract concept with no bearing on the Brexit process.
“We have grave concerns about this apparent complacency, compounded by the lack of transparency on the department’s progress with what in some cases will be critical projects.”
Meanwhile, a separate report by the Institute of Economic Affairs think-tank and trade association Acita urged the Government to take practical steps now to prepare for withdrawal from the EU’s customs union.
The report called for investment in infrastructure at borders to handle the expansion of customs controls, as well as additional resources for HM Revenue and Customs to support companies dealing with the new arrangements. Self-assessment schemes should be introduced to limit the expected increase in customs declarations which HMRC will have to cope with, the report said.
A BEIS spokesman said: “Along with the whole of Government, BEIS is focused on getting the best deal for the UK and ensuring a smooth transition for businesses, consumers and workers.
“Since this report was written, BEIS has received £185m of extra funding to help deliver a successful Brexit by employing an increased number of staff on our Europe work.”
GREG CLARK is widely regarded as one of the Cabinet’s more able Ministers. As Business Secretary, he has developed an Industrial Strategy that reflects his humble upbringing in Middlesbrough – his father and grandfather were both milkmen – and the importance of rebalancing the national economy in favour of the North.
Yet, as the head of the Department for Business, Energy and Industrial Strategy, it primarily falls to Mr Clark and his team to carefully manage Britain’s exit from the European Union so that disruption to companies is minimised and the foundations of the economy are not put at even greater risk.
As The Yorkshire Post stressed when Britain voted in June 2016 to leave the EU, Brexit will have the best chance of succeeding if the brightest and best people from business – and other spheres of public life – are brought together to make the transition as smooth as possible.
Nearly two years after the landmark vote, and less than 12 months until the UK departs the EU, today’s report by Parliament’s Public Accounts Committee does not inspire confidence. Not only does it question the calibre of staff who have been recruited by Mr Clark’s department – the inference is that they lack the necessary “level of experience and expertise” – but it will struggle to pass the necessary laws within the time constraints.
This is not unsurprising given the continuing battle of Parliamentary wills over whether Britain should remain part of the customs union – no preparation was made for all eventualities before David Cameron called the 2016 referendum.
But it does reflect badly on the Civil Service. Once revered around the world for its authority and ability to guide Ministers, it appears to have become a diminished force at a time when its expertise is most needed. For, if the Brexit transition and implementation goes awry, the whole country will be paying the price, which is why Mr Clark – and others – need to take on board today’s report and act accordingly before it is too late.