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Treasury made no plans for Brexit

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A senior Treasury official has told MPs the Treasury has done no contingency planning for the UK’s vote to leave the EU.

The Financial Times reports while the Treasury liaised with the Bank of England and the FCA, its work on Brexit was limited to two reports setting out the negative economic implications of the Leave.

Treasury permanent secretary Tom Scholar told the public accounts committee yesterday the Treasury had not discussed any practical steps for leaving the EU.

He said: “The Government did not produce an alternative desired end point for the relationship between the UK and the EU. That is something that will have to happen.

“We expect . . . the referendum to cause a significant negative economic shock/As a result, it looks unlikely that the 2019/20 fiscal target will be met. It is right to wait a few months to have a better assessment of where the economy is going.”

Asked whether the Treasury had the necessary resources to cope, Scholar said there was a “civil service-wide exercise to ask that question precisely”, but he added “we will be ready as a finance ministry for any response that will be needed”.

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. It does seem odd to me that we have decided to leave with no clear idea (if any idea at all) of where we are leaving for.

    • I think that is part of the excitement of it all. We have a blank sheet of paper on which to draw out what we want, how we want to do it and on what timescale we want it done by. We only need to focus on the positives of the as a nation and build up these positives.

  2. That they had done no work on the possibility of a ‘leave’ vote is painfully clear.
    Presumably this was down to Mr Osborne who seems to have been in shock and denial ever since the result was known.
    He has made a few comments at press conferences but has not been very convincing. He needs to up his game.

  3. Considerablyricherthanyou 8th July 2016 at 5:29 pm

    Conspiracy theorists might say that the Treasury didn’t draw up any contingency plan because there is no intention of invoking Article 50. Even Boris and Nigel didn’t bother hanging around to ensure it is.

    The same conspiracy theorists might say that the referendum was simply an academic exercise in gauging the electorate’s stupidity and inability (for certain parts of the demographic) to see any further than the end of its nose.

    A referendum was the wrong ‘tool’ for the job that needed doing. A bit like amputating one’s leg in order to cure the problem of an in-growing toe-nail. It’d work, but……

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