UK Inquiry Tracker

Whitehall preparations for EU Exit

Public Accounts Committee Closed Inquiry

Opened: 7 Sep 2020 Closed: 19 Apr 2021 Parliament page

Following the UK’s decision to leave the EU in 2016, Government Departments had to formulate new policies, procure goods and services, design and implement new systems and engage stakeholders, while planning for multiple potential outcomes and responding to changing deadlines. Departments spent more than £4.4 billion on preparations between 2016 … Read more Following the UK’s decision to leave the EU in 2016, Government Departments had to formulate new policies, procure goods and services, design and implement new systems and engage stakeholders, while planning for multiple potential outcomes and responding to changing deadlines. Departments spent more than £4.4 billion on preparations between 2016 and 31 January 2020 (see also our recent inquiry on the Get Ready for Brexit public information campaign). Ahead of the then 31 October 2019 deadline, more than 22,000 civil servants were involved in EU Exit. The National Audit Office has produced 28 reports examining government’s preparations up to September 2020, and the latest on learning for Government from preparations from EU exit pulls together the insights from breadth of its work on EU Exit to give perspectives on what government can learn from this experience to prepare for the end of the transition period. It also has lessons for other cross-government challenges that have now arisen, such as the demands of the global Covid-19 pandemic, which similarly requires a fast-paced response, innovative policy solutions, coordinated action across government and effective, external transparency and communication; and longer-term challenges like preparing for the transition to a net zero carbon economy, which will require the civil service to innovate and operate in new ways. The report finds Government still has a lot to do to manage the end of the transition period, particularly on preparations for the border. It is now also responding to the demands of a global pandemic, which like EU Exit requires a fast-paced response, coordinated action and effective external transparency and communication. The key findings include: The need for government to improve how it deals with uncertainty by planning for scenarios which will have a significant impact and could reasonably occur, even if some of these may not be the desired outcome. The importance of government developing clear structures for quick decision-making and clear accountability. It should also draw on expertise in implementation from the start as a routine part of policy development, to build a realistic understanding of the scale and complexity of the task. The need to engage early with partners, stakeholders, businesses and individuals to understand and communicate what is required of them. The importance of strong financial management and the need to track spending from the outset. In October the Committee will question senior Cabinet Office officials on Whitehall’s readiness for Britain’s exit from the European Union on December 31 this year, and what it is learning which can be applied to other major, cross-Governmnet, global challenges we now face. If you have evidence on any of the issues raised in this inquiry, please submit it here by Thursday 1 October 2020. Show less

10 Recommendations

17 Conclusions

1 Report

1 Oral session

1 Event

Activity timeline 3 events

24 Mar
2021

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Twenty ninth report from Session 2019-21

2 Dec
2020

Report published

Twenty-Ninth Report - Whitehall preparations for EU Exit

8 Oct
2020

Oral evidence

Whitehall preparations for EU Exit

Oral evidence sessions 1 session

8 Oct 2020

View on parliament.uk

Whitehall preparations for EU Exit

Alex Chisholm · Cabinet Office Cat Little · Cabinet Office Emma Churchill · Ministry of Justice Jess Glover · HM Treasury

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
Twenty-Ninth Report - Whitehall preparations for EU Exit	HC 682	2 Dec 2020	27	Responded

Recommendations & Conclusions

7 results

4 Recommendation Not Addressed

Twenty-Ninth Report - Whitehall pr…

EU Exit preparations involved more than 22,000 civil servants at the peak and have cost...

EU Exit preparations involved more than 22,000 civil servants at the peak and have cost at least £4.4 billion. But there has been no serious attempt to reflect and capture lessons for other challenges that government faces. Every government department … Read more EU Exit preparations involved more than 22,000 civil servants at the peak and have cost at least £4.4 billion. But there has been no serious attempt to reflect and capture lessons for other challenges that government faces. Every government department has been affected by preparations for EU Exit and this has put pressure on government’s ability to manage cross-government coordination and decision- making. Government has made changes to the way the process has been managed. The ministerial structure now consists of just two committees, one focused on operations and one focused on strategy, and it is clearer where to go for decisions. The Cabinet Office reports that it shares more information on preparations with departments. The key oversight functions, particularly the Transition Task Force and the Border and Protocol Delivery Group now all sit together within the Cabinet Office, which we are told has resulted in a closer working relationship. Government has recognised that other challenges it faces, such as the response to Covid-19, will also require cross-government working, working at pace, or working in new ways. The Cabinet Office feels that it has learnt a lot from EU Exit and put it into a practice via a process of continuous improvement. However, it has no plans to conduct a formal review of the preparations, relying on the National Audit Office’s work to identify lessons, rather than also choosing to do its own significant review of what it can learn for the future. Recommendation: The Cabinet Office should conduct a formal review, including seeking input from third parties (particularly the devolved administrations and Whitehall preparations for EU Exit 7 local government) and covering the whole period of preparations. This should be done early in 2021 when there’s a chance to see how plans have held up in reality post-transition. It should cover structures, communications and oversight—areas which can be applied to other cross-government undertakings. Show less

Government Response

The government's response details revisions to contract management structures and operating procedures, and improvements in information capture and sharing. This response does not address the recommendation for the Cabinet Office to conduct a formal review of EU Exit preparations.

HM Treasury

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7 Conclusion

Twenty-Ninth Report - Whitehall pr…

The Cabinet Office relies on information departments provide on their readiness to identify the highest...

The Cabinet Office relies on information departments provide on their readiness to identify the highest risk elements of the programme, although it continues to use specialist support from the Infrastructure and Projects Authority to review projects and also uses commercial … Read more

HM Treasury

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8 Conclusion

Twenty-Ninth Report - Whitehall pr…

The Cabinet Office set out the current governance and decision-making structures for EU Exit.13 There...

The Cabinet Office set out the current governance and decision-making structures for EU Exit.13 There are two ministerial committees, one focused on operations which currently meets daily and one focused on strategy which meets less often. At an official level, … Read more

HM Treasury

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13 Conclusion Not Addressed

Twenty-Ninth Report - Whitehall pr…

Government spent £4.4 billion on preparations for EU Exit between the referendum and January 2020.34...

Government spent £4.4 billion on preparations for EU Exit between the referendum and January 2020.34 The Treasury admitted that it had not itself asked departments to provide information on their expenditure on EU Exit which it could consolidate to get … Read more

Government Response

The government states it disagrees with this recommendation, discussing its commitment to continuous improvement and lessons learned from EU Exit for resourcing, and explicitly stating it is not proposing a formal review of all preparations. This response does not address the conclusion's points about the tracking and consolidation of EU Exit spending figures.

HM Treasury

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25 Conclusion Not Addressed

Twenty-Ninth Report - Whitehall pr…

We are concerned that industry bodies have said that government has not provided key information...

We are concerned that industry bodies have said that government has not provided key information needed by businesses to prepare, such as detailed guidance on how to apply for simplified customs procedures.70 The Cabinet Office provided an update on the … Read more We are concerned that industry bodies have said that government has not provided key information needed by businesses to prepare, such as detailed guidance on how to apply for simplified customs procedures.70 The Cabinet Office provided an update on the status of two specific systems. The Goods Vehicle Movement Service (GVMS) is a new core HMRC system that will be required for July 2021 for the full implementation of import controls, though it will be used in a more limited scope for transit functionality at the border at the end of December. GVMS is currently in the testing stage and the Cabinet Office believes the testing will be completed in early December. “Check an HGV is ready to cross the border”, previously called Smart Freight, is a web service which the Cabinet Office told us will be available on GOV.UK. and is designed to minimise disruption at the border through allowing drivers and hauliers to check they have the necessary paperwork in place to cross the border successfully. If documentation is missing, then it will indicate 63 Qq 22, 30 64 Q 27 65 Q 24 66 Qq 34, 59; C&AG’s Report, Figure 1 67 Qq 59, 88Q 59 68 Qq 58–59; C&AG’s Report, Figure 1; Announcement from the Cabinet Office at https://www.gov.uk/government/ news/government-accelerates-border-planning-for-the-end-of-the-transition-period 69 Q 25 70 Q 88 Whitehall preparations for EU Exit 17 to the user that they should not travel until the correct documentation is in place. If all documentation is present, then it should link to the issuing of a Kent Access Permit to the user. This service will be mandatory for all drivers and hauliers using the short Channel crossings. However, it will not be operational until the end of December. We are concerned in both cases that the timetables given leave little margin before they must be operational and, in the case of the “Check an HGV is ready to cross the border” service, it is not clear what time there will be for users to become familiar with the system Show less

Government Response

The government agrees and states the recommendation is implemented, outlining its public information campaigns, GOV.UK tools, and business engagement. However, the response does not specifically address the concern about the lack of detailed guidance on simplified customs procedures or the tight timetables for the new border systems (GVMS and Check an HGV).

HM Treasury

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26 Conclusion Not Addressed

Twenty-Ninth Report - Whitehall pr…

The Cabinet Office admitted that the market for customs agents is not expanding at the...

The Cabinet Office admitted that the market for customs agents is not expanding at the pace it needs to meet the increased demand post transition, despite an additional £50 million in funding announced by the government. This was an extension … Read more

Government Response

The government agrees and states the recommendation is implemented, detailing its public information campaigns, GOV.UK tools, and business engagement, including the establishment of the Brexit Business Task Force. However, the response completely fails to address the specific concern about the insufficient expansion of the customs agent market.

HM Treasury

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27 Conclusion Not Addressed

Twenty-Ninth Report - Whitehall pr…

In the event of major delays at the short Channel crossings, the Cabinet Office told...

In the event of major delays at the short Channel crossings, the Cabinet Office told us that there are plans to prioritise certain goods, such as exports of day-old chicks and fish for human consumption, and that additional freight capacity … Read more

Government Response

The government response, while stating agreement and implementation, focuses on general communication and business engagement strategies (Public Information Campaign, GOV.UK, Brexit Business Task Force) rather than directly addressing the specific points raised in the committee's conclusion regarding prioritisation of goods, freight capacity, the border impact centre, or the Kent infrastructure development.

HM Treasury

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Government Response AI assessment · 25 of 10 classified

Accepted 13

Accepted in Part 1

Acknowledged 2

Not Addressed 5

Rejected 4

Total 10 recs + 17 conclusions