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MPs slam lack of Treasury Brexit analysis

MPs slam lack of Treasury Brexit analysis

MPs have criticised HM Treasury for failing to provide any short-term analysis on the impact of Brexit on UK economy.

The Treasury select committee today (December 11) published a report on the withdrawal agreement which prime minister Theresa May secured with the European Union.

A vote on the deal was due to be held today, but was postponed yesterday because Mrs May said she wanted to secure "reassurances" in order to secure its approval by MPs.

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While the Treasury provided the committee with economic analyses of the choices facing Parliament ahead of the vote, it was criticised for only providing analysis of its impact over the long-term.

The committee said there was no short-term analysis of any of the scenarios, including on public finances and on regional and sectoral job losses and gains.

The government's analysis did not show how the economy would transition to a new trading relationship, or the path taken by inflation and unemployment.

Nicky Morgan, the committee's chairman, said she was "disappointed" the Treasury had not included this analysis.

She said: "The aim of this report is not to recommend how MPs should vote, but to ensure that MPs are as informed as possible when it comes to choosing a division lobby.

"Yet the government has made this difficult to achieve."

The committee's report found the financial services sector would contribute less to the UK economy in each of the modelled scenarios.

It also expressed concern that the UK would become a "rule taker" because it would have to abide by European financial services rules but would have no say on them.

The committee also noted that the Bank of England was confident the financial services sector would be able to withstand a no-deal Brexit.

damian.fantato@ft.com