U.K.’s Costs for Brexit Consultants Soar to £459 Million
U.K.’s Costs for Brexit Consultants Soar to £459 Million
(Bloomberg) -- U.K. government spending on consulting contracts since 2017 jumped by 45% to 459 million pounds ($539 million) fueled by Brexit advisory work.
Deloitte was the biggest winner, seeing its consulting fees from government ministries more than triple to 147 million pounds in the period, according to the report from market research firm Tussell.
PricewaterhouseCoopers saw more modest gains from 92 million pounds to 106 million pounds, Ernst & Young increased its consulting fee haul over the first year before dropping back last year to 75 million pounds. KPMG’s fees fell to 57 million pounds, according to the study, which covered spending during the years 2017-18 to 2019-2020.
The Big Four, as they’re known, have faced heavy criticism over the past decade for auditing flaws and their perceived conflicts of interest between their accounting and consulting divisions.
A Government spokesperson said “we continue to take considerable steps to reduce unnecessary spending and protect taxpayers’ money.
Accounting firms, including PwC and Deloitte, emphasized that their services added value.
“We work alongside public sector clients to help tackle complex problems and situations where our expertise is needed,” PwC said in a statement.
The Guardian reported the findings of the report earlier today.
More than four years after Britain voted to leave the European Union, government officials are still grappling with the logistics of leaving the bloc and trying to secure a free trade agreement. Talks are entering their final critical few weeks which will see the U.K. crash out of the EU on Jan. 1 and revert to far less advantageous World Trade Organization rules if a deal can’t be reached.
The Home Office, in charge of domestic affairs in the U.K., had the biggest surge of any government department. Its spending jumped 51 million pounds, or nearly 800 percent over the period, according to Tussell.
“The repercussions of Brexit on borders, security and immigration are complex,” as the report’s authors put it.
The Management Consultancies Association also defended the increase in spending given what it called the “unprecedented volume of workload” from planning for Brexit and reacting to the Covid pandemic.
“Using external resources has enabled the government to work quickly and with intensity on major initiatives,” said Tamzen Isaccson, the association chief said in a statement.
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