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)

Source View on Parliament website

Government Response (AI assessment · 25 of 27 classified)

Accepted 13

Accepted in Part 1

Acknowledged 2

Not Addressed 5

Rejected 4

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

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Recommendations & Conclusions

7 results

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 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 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.

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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

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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

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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.

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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 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 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).

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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.

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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.

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