LONDON – So, how much exactly did Brexit cost us?
On Friday, the public spending watchdog released the first detailed estimate of Brexit’s cost. The British government has so far estimated to have spent taxpayers’ money amounting to at least 4.4 billion pounds in preparation to divorce the European Union.
In a report, the National Audit Office (NAO) said that a bulk of the money was put towards staff costs, making new infrastructure and on external advice payments.
A few of the ministries had to use existing budgets to supplement their spending. Overall, the government spent only 70% of the budget of 6.3 billion pounds allocated to cover the preparation costs.
Around 22,000 government officials worked on Brexit at its peak since last October when Britain was almost on the verge of leaving the European Union without a divorce deal.
“This report provides, for the first time, a clear picture of how much government has spent and what that money has been spent on.”
– Gareth Davies, NAO head
In January end, Britain left the EU which was one of its biggest geopolitical upheavals over the past few decades, cancelling 47 years of membership to the world’s largest trading bloc.
A few of the things that had to be spent on was to increase customs officials’ training, negotiation of trade deals by hiring more staff and improving port infrastructure.
Over half the total budget was spent on three major departments: Environment, Food and Rural Affairs and the Home Office, along with HM Revenue and Customs.
This estimate from NAO only focused on the government’s preparation costs and excluded future costs like the 39 billion pound divorce bill which it has signed with the EU.
The report also does not come to a conclusion on the value-for-money of this whole decision. There are also limitations regarding information given by departments and this estimated amount is just the minimum government spending level.
The data seems limited and the finance ministry appears to be unconcerned by the lack of transparency, according to Meg Hillier, the lawmaker who chairs parliament’s public accounts committee
At a glance, 1.9 billion pounds was spent on government employee payments, 1.5 billion went towards building new infrastructure and external advice took up an amount of 288 million pounds.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.