UK Business Secretary accused of refusing to give evidence on Brexit preparation as OBR warn job losses are ‘unavoidable’'

The UK Business Secretary has been accused of refusing to give evidence on the Brexit preparations on the same day the Office of Budget Responsibility (OBR) warned job losses are “unavoidable”.

The UK Business Secretary has refused to give evidence on the Brexit preparations on the same day the OBR warned job losses are “unavoidable”.

Alok Sharma has been accused of avoiding scrutiny after deciding against appearing in front of the Business, Energy and Industrial Strategy Committee.

Now the committee’s chair Labour MP Darren Jones has urged the senior minister to reconsider.

In an statement released on Tuesday, Mr Jones said : “While Britain’s businesses hope that a Brexit deal will be reached, companies across sectors including automotive, manufacturing, retail, and financial services, and many others, will face disruption from January 1.

“Even at this 11th hour, it is vital that everything possible is being done to advise and support businesses as they prepare for the end of the transition period.

“Scrutiny of the Government’s efforts is crucial to help ensure this support is as effective and targeted as possible.”

The Brexit transition period ends in just 30 days, with trade negotiations still failing to find a breakthrough.

The spat comes on the same day the OBR warned a no-deal Brexit would hit sectors so far coping with the coronavirus pandemic and damage the economy even more.

In a hearing with the Treasury Select Committee, OBR chair Richard Hughes said: “Covid affects the non-tradeable sectors of the economy, whereas Brexit affects the tradeable goods sectors.

“Were we to leave the EU without a deal, these are the sectors that would be hit hardest by the fact they lose access to a very important market to them, which is the EU.

“The nature of the Brexit shock is one that requires further restructuring of the British economy.

“Some parts that are no longer so profitable will have to downsize, other areas will need to expand as a result of the changed terms of trade with the European Union.”

Mr Hughes said this would see widespread job losses, with sweeping changes to the economy guaranteed.

He explained: “People will lose their jobs in their declining industries before the new jobs are created in the ones that will expand, so there will be a period where unemployment needs to rise temporarily alongside that necessary restructuring."

The OBR had also warned that a no-deal Brexit could wipe another 2 per cent off the economy next year.

Cabinet Office Minister Michael Gove earlier hit out at the EU for trying to take the "lion's share" of British fish stocks as Brexit talks go "down to the wire".

The senior minister also called for Brussels to move on other areas of contention such as dispute resolution, as he insisted "it takes two to tango".

The remarks came as negotiations between London and Brussels continue, with both sides stressing that time is running short to strike an agreement, with the Brexit transition period finishing at the end of December.

Mr Gove urged businesses to be ready for the deadline whether a last-minute deal is struck or not.

"The EU still want to take the lion's share of the fishing in our waters, which is just not fair given that we are leaving the EU,” he said.

"The EU still want us to be tied to their way of doing things."

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