Treasury committee chair attacks 'extraordinary' Government response over Brexit report
The chair of the Treasury Committee has hit out at the Government over its "extraordinary" response to a report on transitional arrangements for British businesses.
Responding to her committee's December report on the "urgent" need for clarity over the transition, a government spokesperson said companies were “advised to understand how these may affect their business and explore potential impacts.”
Nicky Morgan said ministers had failed to provide firms with the detail they need to prepare for the period immediately after the UK leaves the EU.
“In this environment of pervasive uncertainty, it is extraordinary that the Government – in its response to the Committee’s Report – is advising businesses to “understand” and “explore potential impacts” of “regulatory change” arising from Brexit", she said.
The former Education Secretary said there was a lack of detail over the long-term relationship between the UK and the EU.
"Key questions remain unanswered and details are in short supply. 'Canada plus plus plus' is not a basis for long-term decision making."
The staunch Remainer warned, “A failure to reach agreement in the March European Council would be economically damaging, and dramatically diminish the value of whatever is eventually negotiated.”
A lack of clarity from the Government would force UK businesses to prepare for a “worst-case scenario” of a trade relationship based on WTO terms, she added.
“As the Committee concluded, adaptation to ‘WTO rules’ could involve a ‘relocation of jobs and economic activity from the UK to the rest of the EU’.”