Twenty-Ninth Report - Whitehall preparations for EU Exit

Select Committee
Public Accounts Committee HC 682 2 December 2020
Report Status Government responded
Conclusions & Recommendations 27 items (10 recs)
Government Response (AI assessment · 25 of 27 classified)
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Twenty ninth report from Session 2019-21 · published 24 Mar 2021

Recommendations & Conclusions

27 results
2 Recommendation Accepted
Government is not doing enough to ensure businesses and citizens will be ready for the...
Recommendation
Government is not doing enough to ensure businesses and citizens will be ready for the end of the transition period, and it is unclear what has been learnt from the previous ‘Get ready for Brexit’ campaign. The Cabinet Office launched … Read more
Government Response Summary
The government states it has accepted and implemented the recommendation, detailing its multi-pronged approach including a national Public Information Campaign, GOV.UK tools, and intensive business engagement, along with the recent establishment of the Brexit Business Task Force.
HM Treasury
View Details
3 Recommendation Accepted in Part
Government continues to spend too much on consultants to undertake work that could be better...
Recommendation
Government continues to spend too much on consultants to undertake work that could be better done by civil servants, and does not do enough to utilise or develop skills and experience in-house. At the peak, more than 22,000 civil servants … Read more
Government Response Summary
The government rejects the recommendation to assess the impact of cross-government working on civil servants. However, it accepts the recommendation to reduce reliance on consultants, establishing a programme with a March 2021 target date to reform engagement and build in-house capability via a new Government Consulting Hub.
HM Treasury
View Details
4 Recommendation Not Addressed
EU Exit preparations involved more than 22,000 civil servants at the peak and have cost...
Recommendation
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
Government Response Summary
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
View Details
5 Recommendation Accepted
EU Exit and the Covid-19 response have shown up critical gaps in the civil service’s...
Recommendation
EU Exit and the Covid-19 response have shown up critical gaps in the civil service’s approach to planning, particularly for unexpected events or undesired outcomes. The Cabinet Office keeps a national risk register, with input from across government and particularly … Read more
Government Response Summary
The government agrees and states the recommendation is implemented, describing existing scenario-based exercises and the enhancement of the Civil Contingencies Secretariat with a new multi-agency Command, Control and Coordination (C3) system from December 2020 to improve cross-government response capacity.
HM Treasury
View Details
6 Recommendation Accepted
Government still does not have a good grip on how much taxpayers’ money is being...
Recommendation
Government still does not have a good grip on how much taxpayers’ money is being spent on cross-government priorities. The Treasury has acknowledged the need for more timely, transparent financial information on cross-government areas of work, including both EU Exit … Read more
Government Response Summary
The government agrees and states the recommendation is implemented. HM Treasury has established a dedicated central team to track COVID-19 and EU Exit funding, is upgrading its OSCAR system for spending data, and has adapted and improved accounting and performance reporting guidance for departments to provide clearer, more consistent information on cross-government spending.
HM Treasury
View Details
1 Conclusion Acknowledged
On the basis of a report by the Comptroller and Auditor General, we took evidence...
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office and HM Treasury (the Treasury) about the learning for government from preparations for EU Exit.1 The C&AG’s report drew together lessons … Read more
Government Response Summary
The government acknowledges the committee's introductory statement by reiterating the context of the report, including the evidence taken and the report's publication date.
HM Treasury
View Details
7 Conclusion
The Cabinet Office relies on information departments provide on their readiness to identify the highest...
Conclusion
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
View Details
8 Conclusion
The Cabinet Office set out the current governance and decision-making structures for EU Exit.13 There...
Conclusion
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
View Details
9 Conclusion Accepted
The Cabinet Office recognises that other challenges government faces, such as the response to Covid-19,...
Conclusion
The Cabinet Office recognises that other challenges government faces, such as the response to Covid-19, will also require cross-government working, working at pace, or working in new ways.18 The Cabinet Office feels that it has learnt a lot from EU … Read more
Government Response Summary
The government details how it applies lessons learned from EU Exit and other reports, such as using an enhanced communications approach and developing a comprehensive system for measuring campaign impact, which aligns with the continuous improvement noted by the committee.
HM Treasury
View Details
10 Conclusion Accepted
The Cabinet Office has a key role in ensuring government is ready to respond to...
Conclusion
The Cabinet Office has a key role in ensuring government is ready to respond to unexpected and unprecedented events. It is responsible for coordinating civil contingencies response to unexpected events, conducting COBRA meetings, working with local resilience forums and with … Read more
Government Response Summary
The government agrees and states its recommendation is implemented, outlining how it already ensures robust contingency planning through regular scenario-based exercises, systematic risk assessment by the Civil Contingencies Secretariat, and the upcoming enhanced multi-agency Command, Control and Coordination (C3) system to address disruptive challenges holistically.
HM Treasury
View Details
11 Conclusion Accepted
Recent events have shown up the limitations in government’s forward planning capability when put into...
Conclusion
Recent events have shown up the limitations in government’s forward planning capability when put into practice. Ministers specifically limited the amount of contingency planning the civil service was expected to carry out ahead of the EU Exit referendum in 2016.27 … Read more
Government Response Summary
The government agrees with the committee's observations and states the recommendation is implemented, highlighting its regular scenario-based exercises and the work of the Civil Contingencies Secretariat (CCS). It also commits to supplementing the CCS with an enhanced multi-agency Command, Control and Coordination (C3) system from December 2020.
HM Treasury
View Details
12 Recommendation Accepted
Our previous work on Covid-19 has highlighted the gaps in economic planning for pandemics, even...
Recommendation
Our previous work on Covid-19 has highlighted the gaps in economic planning for pandemics, even though the risk of a pandemic was one of the most likely risks government had identified. In July 2020, we recommended that the Cabinet Office … Read more
Government Response Summary
The government agrees and states the recommendation is implemented, detailing its ongoing systematic risk assessment, regular scenario-based exercises, and the establishment of an enhanced multi-agency Command, Control and Coordination (C3) system from December 2020 to ensure holistic risk management across government.
HM Treasury
View Details
13 Conclusion Not Addressed
Government spent £4.4 billion on preparations for EU Exit between the referendum and January 2020.34...
Conclusion
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 Summary
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
View Details
14 Conclusion Rejected
The Treasury has relied on existing departmental processes within the system of Accounting Officer accountability...
Conclusion
The Treasury has relied on existing departmental processes within the system of Accounting Officer accountability to ensure money on EU Exit has been used as expected.37 We do not believe that this is sufficient, given the weaknesses identified by the … Read more
Government Response Summary
The government rejects the implicit recommendation (from the overarching Recommendation 4) for changes to Treasury processes, stating its commitment to continuous improvement and iterative learning, and acknowledging the National Audit Office's review.
HM Treasury
View Details
15 Recommendation Accepted
The Treasury has acknowledged the need for more timely, transparent financial information on cross-government areas...
Recommendation
The Treasury has acknowledged the need for more timely, transparent financial information on cross-government areas of work, including both EU Exit and the Covid-19 response.39 In the past, it has said that this is particularly difficult because these areas of … Read more
Government Response Summary
The government agrees and states the recommendation is implemented, detailing actions such as establishing a dedicated central team to track COVID-19 and EU Exit funding, providing updates to the Committee, upgrading the OSCAR system, and improving cross-government accounting guidance for better financial transparency.
HM Treasury
View Details
16 Conclusion Rejected
At the peak, more than 22,000 civil servants worked on EU Exit, and at present...
Conclusion
At the peak, more than 22,000 civil servants worked on EU Exit, and at present the Cabinet Office reports that the number is around 15,000.43 The civil service responded to this demand by moving staff between departments. In particular two … Read more
Government Response Summary
The government rejects the overarching recommendation (Recommendation 4) for a formal review of EU Exit preparations, stating it is committed to continuous improvement and that the National Audit Office has already conducted an extensive review.
HM Treasury
View Details
17 Conclusion Rejected
There has been high turnover among staff working on EU Exit, particularly at senior levels.
Conclusion
There has been high turnover among staff working on EU Exit, particularly at senior levels. DExEU has had three Permanent Secretaries, the Border Delivery Group has had three Director-Generals, and there have been changes at Permanent Secretary grade in key … Read more
Government Response Summary
The government rejects the overarching recommendation (Recommendation 4) for a formal review, arguing it is committed to continuous improvement, has engaged in iterative learning, and that the National Audit Office has already conducted an extensive review.
HM Treasury
View Details
18 Recommendation Rejected
Demands on the civil servants working on the Covid-19 pandemic response and/or EU Exit have...
Recommendation
Demands on the civil servants working on the Covid-19 pandemic response and/or EU Exit have been high at a time when many are having to adjust to new ways of remote working.48 The Cabinet Office believes that morale across staff … Read more
Government Response Summary
The government disagrees with the recommendation and refers to its response for recommendation 4, indicating a rejection of the implicit suggestion to consider staff resilience impacts.
HM Treasury
View Details
19 Conclusion Accepted
Government has made extensive use of consultants to support preparations for EU Exit, and is...
Conclusion
Government has made extensive use of consultants to support preparations for EU Exit, and is also doing so on Covid-19. This Committee has raised concerns in the past about government’s increasing spend on consultants, and on the gap between the … Read more
Government Response Summary
The government agrees with the need to address consultant spending and has established a programme with a target implementation date of March 2021. This programme includes creating a Government Consulting Hub, reforming controls, improving data, developing a consultancy standard, and addressing workforce capability to reduce reliance on consultants.
HM Treasury
View Details
20 Recommendation Accepted
The Cabinet Office set out that there is sometimes a need for consultants with 43...
Recommendation
The Cabinet Office set out that there is sometimes a need for consultants with 43 Q 101; C&AG’s Report, para 15 44 Qq 53, 54; C&AG’s Report, para 26 45 Qq 5, 18 46 Qq 46, 53; C&AG’s Report para … Read more
Government Response Summary
The government agrees with the recommendation to reduce spending on consultants and contractors, outlining a programme that includes establishing a Government Consulting Hub by early 2021, reforming central controls, improving data quality, developing a new consultancy standard, and tackling capacity and capability drivers.
HM Treasury
View Details
21 Conclusion Accepted
The Cabinet Office launched a new communications campaign, ‘The UK’s new start: let’s get going’,...
Conclusion
The Cabinet Office launched a new communications campaign, ‘The UK’s new start: let’s get going’, in July. Its aim is to inform businesses and the public about what actions they need to take to be ready for the end of … Read more
Government Response Summary
The government states it agrees and is already implementing this, detailing its three-fold approach of public information campaigns, GOV.UK tools, and intensive business engagement. It confirms that the current campaign tracks actions taken, not just awareness, through independent surveys and established a Brexit Business Task Force in December 2020.
HM Treasury
View Details
22 Conclusion Accepted
Despite the new campaign having been underway for some time, there remains a significant risk...
Conclusion
Despite the new campaign having been underway for some time, there remains a significant risk that businesses and individuals will not be ready for the end of the transition period. Government survey data suggests that 36% of SMEs still believe … Read more
Government Response Summary
The government agrees and outlines its extensive preparedness efforts, including public information campaigns, GOV.UK tools, and business engagement events. It states that the current campaign uses independent surveys and ONS data to track intent and actions taken, providing information on readiness, and that engagement was intensified with the Brexit Business Task Force in December 2020.
HM Treasury
View Details
23 Recommendation Acknowledged
The Covid-19 pandemic has had an impact on readiness for EU Exit.
Recommendation
The Covid-19 pandemic has had an impact on readiness for EU Exit. The Cabinet Office is concerned that the primary focus of many small businesses during this year has been the impact of the pandemic on their business, rather than … Read more
Government Response Summary
The government agrees with the recommendation to ensure tools are in place to support individuals and businesses beyond the transition period but provides no specific details or commitments on how this support will be extended.
HM Treasury
View Details
24 Conclusion Accepted
Although the Cabinet Office believes it has been clear that businesses need to be ready...
Conclusion
Although the Cabinet Office believes it has been clear that businesses need to be ready for the end of the transition period, there are multiple dates in 2021 from which new requirements for businesses on importing and exporting to the … Read more
Government Response Summary
The government agrees and states the recommendation is implemented, outlining its ongoing public information campaigns, GOV.UK tools, and intensive business engagement, including the establishment of the Brexit Business Task Force in December 2020, all aimed at communicating new requirements to businesses.
HM Treasury
View Details
25 Conclusion Not Addressed
We are concerned that industry bodies have said that government has not provided key information...
Conclusion
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
Government Response Summary
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
View Details
26 Conclusion Not Addressed
The Cabinet Office admitted that the market for customs agents is not expanding at the...
Conclusion
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 Summary
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
View Details
27 Conclusion Not Addressed
In the event of major delays at the short Channel crossings, the Cabinet Office told...
Conclusion
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 Summary
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
View Details