The Government’s new Brexit unit has racked up a legal bill of £256,000 in “fixed-fee legal advice” since its creation in July.
It has spent a further £12,700 in relation to “additional billed fees and disbursements”.
The figure translates to around £33,500 a week since the group was formed by Theresa May in the wake of Britain’s decision to leave the EU.
Brexit minister David Jones said the department, officially dubbed the Department for Exiting the EU, is now “assessing the overall requirement for legal advice” for the coming year.
Speaking in Parliament on Wednesday (7 September), Jones added that so far “no spend has been incurred in relation to external firms”.
The comments were made in response to a question posed by Liberal Democrat EU spokesman Nick Clegg, who asked the Brexit department to reveal its spend on internal and external legal advice.
Jones’ statement on external firm spending was unexpected given the rapidly climbing legal bill and the large number of City law firms jostling for a position advising the Government on Brexit.
He is expected to include a predicted sum for external legal advice when he reveals the proposed future legal spend of the department for the year ahead.
Linklaters, Clifford Chance and Slaughter and May have all been slated as potential advisers to the Government’s Brexit unit in recent weeks.
Meanwhile Freshfields Bruckhaus Deringer has been drafted in by longstanding client the Bank of England to advise it on Brexit-related issues, including a £170bn stimulus package unveiled in August to boost the UK economy.
HM Treasury is also understood to have held unofficial meetings with law firms and the City of London Corporation to discuss the impact of Brexit on Britain’s financial services market. Firms attending the meeting to advise the public body on upcoming negotiations included Allen & Overy, Freshfields, Clifford Chance, Linklaters, Slaughter and May, Simmons & Simmons and Pinsent Masons.
In a further bid to capitalise on legal advice to both commercial clients and Government in the wake of Brexit a number of firms have established nationwide public policy teams this summer. Pinsent Masons set up a policy unit last month, bringing in RBS head of public affairs and external relations Andrew Henderson to head up the group.
The role of law firms’ advice during crucial Brexit negotiations between Government and big business has also prompted new discussions around lobbying in the UK.
It emerged last month around 15 law firms that advise the UK Government will continue to do so under the radar following a decision by officials to keep them off the lobbying register.
The controversial decision by registrar Alison White will allow firms to stay off the lobbying register because they do not “directly” lobby ministers.
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