Government asks service suppliers to outline their plans for a no-deal Brexit
12 February, 2019
The government has asked the firms responsible for supplying vital public services – such as schools, prisons, hospitals and armed services – to outline their plans for a no-deal Brexit scenario.
The request comes as we quickly approach the 29 March deadline with no deal having been struck between the UK and the EU regarding Brexit.
Sources from the firms have said they have never experienced such “unknowing” in their professional lives despite being vital in supplying essential goods like food, medicine, toiletries, spare parts, and labour to the UK.
Britain began outsourcing supply work in the 1980s to firms such as Babcook, Capita, Compass, G4S, Mitie, and Serco – who are all among the businesses that the government requested a plan from. The contracts are worth a combined £250 billion annually.
Use of private contractors by the government has been in question since the collapse of Carillion in 2018 which left people wondering whether more services should be brought into the public sector.
Total funding of £2 billion has been given to government bodies and those working with them to create Brexit plans and contingency plans.
Despite the UK government’s confidence that a no-deal Brexit will not come to pass, businesses are doubtful that any agreements will be made. A violent crash out of the EU will cause major disruptions at customs – which will, in turn, have a negative impact on suppliers.
Businesses supplying the defence sector have also been asked for plans. A Ministry of Defence Spokesperson has said: “As part of our no deal preparations, we are talking to suppliers to ensure any potential challenges or impacts are addressed. This is routine contingency planning.”