Politics

Sajid Javid orders HMRC to make no-deal Brexit planning an ‘absolute top priority’



Sajid Javid has ordered HM Revenue and Customs to make no-deal Brexit planning its “absolute top priority” in the latest sign of his efforts to prepare for October 31.

The Chancellor has written to HMRC chief executive Sir Jon Thompson asking for action to ensure staff and systems are in place to “deliver a functioning regime” on Brexit day.

Sir Jon, who is due to stand down in the autumn, has earned a reputation for publicly spelling out the challenges posed by a no-deal scenario and has received death threats for “speaking truth unto power about Brexit”.

In an indication of tensions about HMRC’s attitude, Treasury sources said the letter from Mr Javid was an instruction to “Whitehall’s unruliest department” to prepare for no deal.

Chancellor of the Exchequer Sajid Javid and Home Secretary Priti Patel visit Tlbury Docks (EPA)

In a letter to Sir Jon, Mr Javid said: “HMRC must make no deal preparation their absolute top priority as the UK prepares to exit the European Union on 31st October 2019, with or without a deal.”

He said HMRC must deliver “critical internal systems and staffing” to function on October 31, including the 5,000-plus additional staff required to support and handle the increase in businesses making customs declarations.

Mr Javid also said HMRC should work across Whitehall to set up an “ambitious” central helpline to support firms with concerns about Brexit.

He said customs officials must work with counterparts from the Treasury, Home Office, Department for Environment, Food and Rural Affairs and Border Force to deliver the “necessary changes to customs, tax and welfare arrangements in order to ensure a smooth exit and transition”.

In his instructions to Sir Jon, Mr Javid said he expected to receive “weekly delivery-focused updates from HMRC to ensure progress remains on track” in the run-up to October 31.

The pair visited the Essex docks on Thursday (EPA)

The Chancellor believes everyone in the Government must be prepared for a no-deal exit, including every arm of the Treasury.

He believes HMRC has the “levers to speak to hundreds of thousands of businesses” and wants to ensure they are “more than adequately supported”, a Treasury source said.

Mr Javid’s letter comes the day after it was announced that the Government has put aside more than £2 billion to spend on no-deal Brexit preparations as the October 31 deadline approaches.

The funding includes £1.1 billion for departments and the devolved administrations to spend immediately, with a further £1 billion in reserve.

The letter is the latest sign of Mr Javid’s intention to mark a new era at the Treasury after taking over as chancellor from Philip Hammond, who remains strongly opposed to a no-deal Brexit.

Sir Jon’s frequent appearances in front of Commons select committees have seen him highlight some of the difficulties faced by his officials over Brexit.

In November last year, the HMRC head told MPs that “the date for putting in an optimal customs system for the UK in the event of no deal was passed months ago”.

A Government spokesman, in a statement on behalf of the HMRC, said: “HMRC has been preparing for Brexit every day since the referendum. The department has led hundreds of meetings with industry representatives, hired over 5,000 staff specifically to support Brexit, communicated with thousands of businesses and stakeholders as well as publishing clear guidance on how to prepare.

“HMRC has a system ready to handle customs declarations after Brexit, is rolling out a new Customs Declaration Service alongside this and has delivered new processes at the UK’s borders. We’ve updated parliament on our progress regularly and continue to prioritise preparing the UK for leaving the EU on 31 October.”



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.