Business department made 'virtually no attempt' to properly prepare for Brexit, MPs warn

Influential committee expresses 'grave concerns' over department's failure to prioritise Brexit-related work

Over 1000 legal changes are needed to enact Brexit, but MPs raised concerns the government is running out of time to make them (AFP/Getty)

The government’s business department is woefully unprepared for Brexit because of ministers’ “alarming” complacency on the issue, an influential committee of MPs has warned.

In a blistering report, the Public Accounts Committee (PAC) accused the department of having made “virtually no attempt” to prioritise the work needed to enact Brexit and claimed ministers were “operating in a parallel universe where urgency is an abstract concept”.

MPs expressed “grave concerns” over what they said was the apparent complacency of the department, which is led by the business secretary, Greg Clark.

The department has not yet refocused its priorities to account for Brexit, the committee said, and has failed to start the process of installing new IT systems to replace EU databases for projects such as the emissions trading scheme and the registration of trademarks.

The PAC called the failure to do so “extraordinary” and said it was “extremely sceptical” the government will be able to deliver the projects in time.

The Department for Business, Energy and Industrial Strategy (BEIS) is among those most affected by Brexit, with responsibility for around a fifth of all the work needed to implement Britain’s departure from the EU, but told the committee it was unable to halt or postpone its existing projects in order to focus on this work.

MPs said they were “alarmed” that the department “has made virtually no attempt to re-order its priorities” in the wake of Britain’s decision to leave the EU.

The committee gave Mr Clark two months to update it on which programmes will be scrapped or delayed in order to allow officials to focus on Brexit-related work.

It said that, while the department has recruited most of the staff needed carry out this work, many lack the necessary experience and expertise “to deliver a very challenging programme of work at pace”.

Labour MP Meg Hillier, who chairs the committee, 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.

“The department is responsible for around a fifth of the work streams the government must complete as the UK leaves the EU. It is an extremely important, challenging and time-sensitive workload.

“Yet the department told us it had not re-prioritised its overall programme of work, had not begun procurement for around a dozen essential digital systems and could not provide vital information about its workforce.”

She added: “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.”

The committee also repeated concerns over the government’s ability to make the 1,000 legislative changes needed before Brexit, saying it was “not confident” ministers “will be able to cope with the volume required”. The Department for Business alone needs to get around 150 changes through Parliament in order to implement its Brexit-related work.

The Independent has previously revealed that ministers face a race against the clock to pass the 1,000 pieces of secondary legislation needed to extract Britain from the EU.

​MPs also accused the government of a lack transparency over Brexit preparations, saying this was “undermining scrutiny” and “keeping Parliament and taxpayers in the dark”.

A BEIS spokesperson 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, identifying the most pressing legislative challenges and remaining ahead of schedule by recruiting high-calibre staff to ensure we prepare thoroughly and effectively.”