Category Archives: Society

Britain, Economic, European Union, Government, Politics, Society

Brexit: Preparations for a ‘no-deal’

BREXIT

BRITAIN will recognise some EU regulations in the event of a no-deal Brexit. The Government says this is to ensure that the country does not grind to a halt.

Ministerial papers setting out what will happen if the UK leaves without a deal make clear that Britain will adopt a “flexible” approach to ensure EU medicines, automotive parts and chemicals are still available in the UK.

Several of the papers which are due to be published on Thursday say the “permissive” nature of the plans are based on an undercurrent of “project no fear”.

Previously, concerns have been raised that the M20, for example, could be turned into a giant lorry parking bay because of the anticipated huge disruption to cross-channel trade caused by the EU in the event of a no-deal.

However, away from customs, the documents offer a constructive way for Britain to continue trading with the EU after a no-deal Brexit. On medicines which are made in the UK, the papers indicate that the UK regulator would take steps to keep market access for importers open to avoid any disruption.

But this approach will leave the UK open to claims that it is giving up yet more negotiating strength by agreeing to accept EU goods without ensuring British goods will be accepted on the Continent in a reciprocal fashion.

EU exit talks have restarted in Brussels between Dominic Raab, the Brexit Secretary, and Michel Barnier, the EU’s chief negotiator. Mr Raab, who will give a speech on Thursday, will set out the Government’s plans for a no-deal.

Over the last few days, the Brexit Secretary said: “It is the responsibility of the EU to ensure its consumers and businesses are not harmed.

“The UK Government believes this is best achieved by both sides taking a non-disruptive approach and will be encouraging cooperation with the EU on no-deal planning.

“Securing a deal is still by far the most likely outcome, but we want to make sure that we clearly set out the steps that people, businesses and public services need to take in the unlikely event that we don’t reach an agreement.

“It’s the responsible thing for any government to do, to mitigate the risks and make sure the UK is ready to make a success of Brexit.”

Each of the 84 papers to be released follow the same format, opening with remarks that a “no-deal” Brexit is unlikely, but that “we are a responsible government and we should be prepared”.

The papers – which will be published in batches – then set out “how it works now” and “how it works in a no-deal scenario”, with examples given to allow companies to prepare.

Government insiders have described the papers as “sensible, proportionate, and part of a common-sense approach to ensure stability whatever the outcome of talks.”

A source said: “The truth is in some sectors there won’t be much change, it is a mixture… It is not a case of ‘worse for us and better for them’.”

Mr Raab will outline in his speech how the Government will mitigate the potential risks of leaving the EU without a deal and ensure continuity and stability for businesses and the general public.

 

THIS is the week when we will finally discover what the consequences will be in the event of the Brexit talks failing: the Government’s no-deal papers are to be published on Thursday. Project Fear is largely responsible for any public panic, but the Conservatives it must be said have made things worse. By threatening that the only options are Chequers or no-deal (which is untrue), that have cast no-deal as a cliff-edge rather than a challenge we can handle. And the Government’s rhetoric of doom hasn’t even been clear in its target: is it Britain that should fear more, or Europe?

It would be very rough for both sides, which is why no-deal ought to be avoided as far as possible. But, for many, a no-deal is also a reality. If Britain doesn’t get what it wants – if it is told it must adhere to EU laws, open borders, restrictions on trade and diminished sovereignty – then it must walk away. That warning was clearly laid out in the Conservative Party manifesto.

The only mystery is why the Government has waited for so long to prepare properly and openly for a no-deal outcome. It should have promised that there would be agreements in place on such necessities as medicines and air-travel, or that the technology would be ready to deal with customs and goods movement. It should also have emphasised that whatever short-term hit the UK takes to its economy, in the long-run it may well be Europe that suffers the greater damage, while the UK reorientates towards global trade. And if there is no-deal, we are under no obligation to pay £39billion as a divorce bill. In such circumstances, Brussels should wave goodbye to our cash.

Britain isn’t the only one accused of playing with fire. Brussels might attempt to even turn defence into a bargaining chip. Defence is one area where the EU clearly needs us more than we need them. The Government’s no-deal rhetoric should ram this point home on all fronts: Brussels would be unbelievably stupid to drive away a partner as rich and influential as the UK.

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Britain, Government, Politics, Scotland, Society

Brexit and the devolution settlement

BREXIT

For most of the two decades following Scottish devolution, nobody would have anticipated for a moment that the UK would be leaving the European Union or that this would have consequential effects on relations between Edinburgh and London.

But, given we have had two years of dithering as the UK Government decided what kind of Brexit it wanted, there was surely a time when a sensible compromise could have been delivered that respected the devolution settlement and one that did not undermine the UK’s own internal market.

. See also Scotland’s EU Continuity Bill now being tested in Supreme Court

Instead, what we have witnessed is relations descending into a bitter row over what the SNP has described as a “power grab” over issues that are currently controlled by the EU (but which would otherwise be devolved).

In the context of the arguments, both the UK and Scottish Governments had a point. Westminster wants to make sure the UK doesn’t leave the wealthiest single market in the world and end up with further sub-divisions inside the UK. Yet, it’s not unreasonable for the SNP to be concerned that matters which are supposed to be devolved might end up being controlled in London. Whilst the UK Government insists this will not happen and that powers transferring from the EU will all be sorted out eventually, it does feel like ministers ran out of time to sort out a deal in advance of Brexit.

What has transpired since is the potential start of a constitutional crisis. The Scottish Parliament passed its own Continuity Bill in an attempt to safeguard the disputed powers of which the bill’s legitimacy is currently being considered by the UK Supreme Court.

An indication of the reason behind the chaos has emerged in a report by MPs that says Whitehall officials don’t actually understand devolution. This is all the more surprising given that the committee is chaired by Sir Bernard Jenkin, a prominent Conservative Brexiteer.

Scotland’s Constitution Secretary Mike Russell remarked it is an “astonishing state of affairs” and one that should be rectified as soon as possible (which will only happen after Brexit now). There is perhaps, though, a silver lining that stands out from the conclusions of the report, in that the UK Government hasn’t been deliberately trying to grab powers that should be devolved. It’s simply been struggling to understand what to do.

Might this just be the basis for a general cooling of tensions between Holyrood and Westminster and a chance to find a reasonable way forward? In these turbulent times, that would certainly help.

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Consumer Affairs, Energy, Government, Society, Technology

Smart Meters: Energy giants can remotely cut supply

HOUSEHOLD METERING

ENERGY giants can use smart meters to cut the power supply to homes and force customers to pay their bill up front.

It is now known that suppliers have the power to switch the new digital devices to a prepayment setting without visiting the house.

This would force the occupier to top up their account before they use any gas or electricity – and if their balance runs out, their power could automatically be cut off.

More than 11million smart meters have been installed across the country as part of a national upgrade programme ordered by the Government.

. See also Smart Meters and the ‘hidden agenda’

The new meters automatically send readings to suppliers as often as every half an hour and show customers in pounds and pence exactly how much energy they use.

The aim is to make bills more accurate and help customers save money by encouraging them to reduce their power consumption. Experts warn, however, that smart meters give firms unprecedented power over their customers, including access to reams of data about how and when customers use energy and the ability to control a customer’s supply remotely.

Major energy companies said they had not yet used the feature, but admitted it was possible.

A spokesperson for auto-switching service Look After My Bills, said: “Suppliers now have a frightening level of power to hit customers in the pocket. In the past, the Big Six have proven far too eager to force expensive prepayment meters into people’s homes – despite warnings from OFGEM that they should only ever be used as a last resort.

“If they can switch someone to a prepayment meter with a flick of a switch whenever they choose, this is very worrying for families across the country already struggling with unfair price rises.”

A prepayment meter works like a pay-as-you-go mobile phone in that customers have to top it up with credit before they can use any power.

They are most commonly found in households where the homeowner or occupier is struggling financially, because they provide a better means of controlling how much is spent on energy.

Energy firms said that one of the benefits of new smart meters is that they can switch a meter from prepayment to the more popular credit setting remotely.

Energy watchdog OFGEM has strict rules on when suppliers can force customers to have a prepayment meter.

It is supposed to be a last resort when recovering debt, and suppliers should put households on to repayment plans first.

Currently, power companies need a warrant to install a prepayment meter against a customer’s wishes because they need access to their property. But if suppliers can switch someone’s meter remotely it would remove the need to go through the courts.

Under OFGEM rules energy firms would still have to show they had done everything possible to avoid forcing someone to have a prepayment meter and take steps to ensure that any vulnerable customers are protected.

An OFGEM spokesman said: “For suppliers that are considering if it is appropriate to offer prepayment to smart meter customers, the same rules apply as for those on traditional meters.

“Suppliers must be clear in their communications and establish that prepayment is practical and affordable for a customer. OFGEM would take any breach of these rules by a supplier very seriously.”

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