Government running out of time to prevent medicine shortages if there is a no-deal Brexit, MPs warn

Chris Grayling's department criticised for claiming £33m Eurotunnel payout will be spent on 'infrastructure' - when money would have been spent anyway

Ministers are running out of time to prevent medicine shortages if there is a no-deal Brexit following the collapse of the contracts to use cross-channel ferries, MPs warn today.

Departments are still “waiting for clear instructions” from the new prime minister on what to do next, they say – despite the rising threat of a crash-out from the EU at the end of October.

The report, by the influential public accounts committee (PAC), puts the bill for the ferry contracts signed and then scrapped by Chris Grayling, the beleaguered transport secretary, at around £85m.

And it warns that no adequate replacement plans are in place, echoing industry criticisms revealed by The Independent last month.

Meg Hillier, the committee’s Labour chairwoman said: “In just four months’ time, on 31 October, the UK is expected to leave the EU yet momentum appears to have slowed in Whitehall.

“Departments must urgently step up their preparations and ensure that the country is ready.”

The committee is strongly critical of the terms of the £33m payout to Eurotunnel, after it was excluded from budding for the contracts handed out to ferry companies.

It was followed by a £51.4m bill when the contracts – including a £13.8m deal with “start-up firm” Seaborne Freight, which had no ships – were scrapped.

The department for transport (DfT) claimed the Eurotunnel had committed to spending the £33m “on projects relating to infrastructure at the Channel Tunnel site, including security and border preparedness measures”.

But the PAC said: “We are not convinced that the department has secured any additional benefit from its £33 million settlement with Eurotunnel.

“This appears little more than window dressing, as Eurotunnel has said that it would have committed at least £33 million on these types of projects irrespective of the settlement.”

Last month, the cabinet office announced new plans to secure extra freight capacity if a no-deal became likely, but only signing contracts “as and when required”.

However, the PAC recommendation was that departments must “urgently step up their preparations on the assumption that the UK could be leaving the EU on 31 October”.

The Independent reported last month that medical firms feared the political paralysis created by the Tory leadership race was preventing proper planning.

One trade group protested there had been no “clear direction to industry”, while a second warned of delays because “everything needs ministerial sign off”.

An MP investigating the situation suggested the indecision was because the DfT had been “burned by the chaos” that followed Mr Grayling’s botched attempt to bolster supplies.

Ms Hillier added: “The taxpayer has been landed with a £85m bill with very little to show for it following the rushed procurement of ferry freight capacity.

“This £33m Eurotunnel settlement comes on top of the money paid to cancel the ill-fated ferries deal.”