Treasury committee asks for Brexit fallout analysis from FCA and BoE

By Daniela Esnerova

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Oct 18, 2018

Treasury committee chairwoman Nicky Morgan has reiterated her request for the FCA, Bank of England and chancellor to publish a Brexit withdrawal agreement impact analysis before MPs vote on the deal.

She initially wrote to to  the FCA’s chief executive Andrew Bailey, the Bank of England’s governor Mark Carney and chancellor Philip Hammond in June asking the three organisations to publish their analyses in good time before parliament comes to vote on the Brexit deal, as the vote would be meaningless without the analysis.

The Treasury committee has now appointed former member of the Office for Budget Responsibility’s Budget Responsibility Committee Professor Stephen Nickell as a specialist adviser to work on its Brexit inquiry, particularly on the economic impact of the withdrawal agreement.

Morgan has written to Hammond to ask for Treasury officials to be freed up to work with Nickell on the project.

Morgan has also asked Carney to provide further clarity on a potential forecast that house prices would fall by a third in a “no deal” scenario, which Carney reportedly included in a briefing to cabinet last month.

Morgan says: “Parliament must be provided with a full and frank assessment of the consequences of implementing the withdrawal agreement and future relationship with the EU before it comes to vote.

“Without such analysis, any vote cannot be considered meaningful.

“When negotiations between the Government and the European Commission have concluded, the committee has asked the Bank and the FCA to publish its analysis in good time before any Parliamentary votes on the withdrawal agreement and future relationship.”

She adds: “The Bank and the FCA should provide analysis of any deal agreed, and of a ‘no deal’ scenario, in the event of a breakdown in negotiations or a parliamentary vote against the withdrawal agreement.

“They should also consider providing analysis for the scenario in which the UK leaves the EU with no trade agreement at the end of a transition period.

“This analysis will ensure that parliament’s decisions are based on the best possible evidence.”

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