Final Brexit bill could soar by billions, MPs warn
3 min read
Ministers' claims about the size of the final Brexit divorce bill are too "narrow" and fail to account for possible billions in extra spending, a cross-party group of MPs has warned.
A new report from the Public Accounts Committee has told ministers to provide "clear and unambiguous information" about the total cost of the UK’s exit from the European Union before any vote on the final deal.
MPs on the influential committee warned that, with billions of uncosted spending still to be accounted for, the total cost of exiting the EU could exceed the Treasury’s estimate of £35-£39bn.
The committee said ministers had failed to include at least £10bn in spending associated with the settlement deal, and warned that taxpayers could still be stumping up for costs associated with the UK’s future relationship with the bloc for years to come.
Britain could, the report warned, face “significant” extra costs depending on the final deal it strikes with the European Union, including the cost of establishing new trade and customs arrangements, and setting up new institutions to take on work currently done by EU agencies.
Committee chair Meg Hillier said: "The true cost of Brexit is a matter of outstanding public interest.
"Government’s narrow estimate of the so-called divorce bill does not meet this description. It omits at least £10 billion of anticipated costs associated with EU withdrawal and remains subject to many uncertainties.
"The UK’s contribution to the EU’s outstanding commitments and liabilities after 2020 is unknown. The estimate also excludes costs that may arise from parts of the withdrawal agreement still to be negotiated."
The report also poured cold water on the so-called 'Brexit dividend' – which ministers claim will help fund a £20bn cash boost for the NHS – saying that uncertain exit costs make any potential windfall hard to calculate.
Ms Hillier added: "We know UK payments to cover pensions and benefit costs could run for decades. But there are other potentially significant ongoing costs likely to arise from post-Brexit restructuring – for example, new trade and customs arrangements, replacement institutions and the costs of participating in EU programmes as a non-member state.
"Given these uncertainties, it is critical that Parliament and the taxpayer are kept informed as agreements are reached and new information becomes available.
"A Parliamentary vote on EU withdrawal will only be truly meaningful if this information is disclosed in a timely fashion.
"Government must explain how it will approach this task and waste no time in getting on with it."
A Treasury spokesperson said: "The National Audit Office confirmed in April that our estimated figure is a reasonable calculation. Now we are discussing what our future relationship looks like."
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