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| The Big ‘Brexit’ Winners? Lobbyists and Lawyers | |
| (about 3 hours later) | |
| LONDON — Around dawn, a few hours after Britons voted last summer to leave the European Union, an official with a pro-“Brexit” group called an acquaintance on the Remain side to discuss what would come next. One thing led to another and, today, the two former opponents are partners in a consultancy, Hanbury Strategy. | LONDON — Around dawn, a few hours after Britons voted last summer to leave the European Union, an official with a pro-“Brexit” group called an acquaintance on the Remain side to discuss what would come next. One thing led to another and, today, the two former opponents are partners in a consultancy, Hanbury Strategy. |
| “Things are going well,” said the official, Paul Stephenson, the former communications director for Vote Leave. “It’s early days, but people are receptive and, I think, because we are both so fresh out of politics and we both were at senior levels in the campaigns, we have a very good understanding and a bit of an edge over some of our rivals on this stuff.” | “Things are going well,” said the official, Paul Stephenson, the former communications director for Vote Leave. “It’s early days, but people are receptive and, I think, because we are both so fresh out of politics and we both were at senior levels in the campaigns, we have a very good understanding and a bit of an edge over some of our rivals on this stuff.” |
| While Brexit may have sent the pound sterling into free fall and spread tremors through the business world, there have been some winners — most conspicuous among them the big consulting agencies, such as KPMG and PricewaterhouseCoopers. And lawyers, trade experts, lobbyists and public relations firms are all lining up to coach businesses and the British government throughout what promises to be a complex, multiyear negotiation whose outcome remains uncertain. | While Brexit may have sent the pound sterling into free fall and spread tremors through the business world, there have been some winners — most conspicuous among them the big consulting agencies, such as KPMG and PricewaterhouseCoopers. And lawyers, trade experts, lobbyists and public relations firms are all lining up to coach businesses and the British government throughout what promises to be a complex, multiyear negotiation whose outcome remains uncertain. |
| Those advisory firms, in turn, have hired a flock of people who, like Mr. Stephenson and his partner, Ameet Gill — who was a top aide to Britain’s former prime minister, David Cameron — worked in the Leave and Remain campaigns. | Those advisory firms, in turn, have hired a flock of people who, like Mr. Stephenson and his partner, Ameet Gill — who was a top aide to Britain’s former prime minister, David Cameron — worked in the Leave and Remain campaigns. |
| Brexit holds enormous implications for British businesses, which stand to lose the right to move goods to and from continental Europe without tariffs or paperwork. Banks will probably have to relinquish the right to use London as a base from which to sell financial services across the European Union’s 27 other member nations. | Brexit holds enormous implications for British businesses, which stand to lose the right to move goods to and from continental Europe without tariffs or paperwork. Banks will probably have to relinquish the right to use London as a base from which to sell financial services across the European Union’s 27 other member nations. |
| In the days after the vote, businesses, unprepared for the outcome, were in shock. | In the days after the vote, businesses, unprepared for the outcome, were in shock. |
| There was a “huge hunger for clarity,” said Alan Leaman, the chief executive of the Management Consultancies Association, which has around 60 members. | There was a “huge hunger for clarity,” said Alan Leaman, the chief executive of the Management Consultancies Association, which has around 60 members. |
| Mr. Leaman compared the referendum result to the business equivalent of a highway pileup, with consultancies acting as the emergency services. | Mr. Leaman compared the referendum result to the business equivalent of a highway pileup, with consultancies acting as the emergency services. |
| “When something very major breaks out, it is hugely disruptive,” Mr. Leaman said. “For a period, what people want to understand is, ‘What are the options, and what potential challenges are associated with this?’” | “When something very major breaks out, it is hugely disruptive,” Mr. Leaman said. “For a period, what people want to understand is, ‘What are the options, and what potential challenges are associated with this?’” |
| It is not just businesses that need advice. The British government had not prepared for Brexit, which may prove to be the Civil Service’s biggest single task since World War II. | It is not just businesses that need advice. The British government had not prepared for Brexit, which may prove to be the Civil Service’s biggest single task since World War II. |
| Since the European Commission covers trade negotiations on behalf of its member countries, there is an acute shortage of negotiators in London. | Since the European Commission covers trade negotiations on behalf of its member countries, there is an acute shortage of negotiators in London. |
| Tom Brake, the foreign affairs spokesman for the Liberal Democrats who campaigned to remain in the European Union, has so far failed to extract meaningful figures from the government about its consultancy spending, though he says that top trade experts charge up to $10,000 a day. | Tom Brake, the foreign affairs spokesman for the Liberal Democrats who campaigned to remain in the European Union, has so far failed to extract meaningful figures from the government about its consultancy spending, though he says that top trade experts charge up to $10,000 a day. |
| “I suspect the government is racking up phenomenal costs,” he said. “I am sure that the people who voted to leave, who had genuine grievances about the lack of job opportunities, did not envisage that one of the side effects of Brexit would be many jobs for highly powered legal and consulting firms.” | “I suspect the government is racking up phenomenal costs,” he said. “I am sure that the people who voted to leave, who had genuine grievances about the lack of job opportunities, did not envisage that one of the side effects of Brexit would be many jobs for highly powered legal and consulting firms.” |
| In one well publicized episode last year, Deloitte, the advisory company, apologized after a memo leaked by one of its employees suggested that the government had no plan for Brexit, estimating that up to 30,000 extra civil servants might be needed. After the leak, which infuriated ministers, Deloitte agreed not to bid for government contracts for six months, the British news media reported. | In one well publicized episode last year, Deloitte, the advisory company, apologized after a memo leaked by one of its employees suggested that the government had no plan for Brexit, estimating that up to 30,000 extra civil servants might be needed. After the leak, which infuriated ministers, Deloitte agreed not to bid for government contracts for six months, the British news media reported. |
| But where there is confusion there are opportunities. Most big advisory firms now offer Brexit advice, and smaller companies promote themselves as experts. One firm calls itself “Article 50 Associates,” named for the European Union treaty article that Britain will use to withdraw, and describes itself as “a specialist political consultancy focusing on helping individuals, enterprises, agencies and others navigate the twists and turns in the Brexit process.” | But where there is confusion there are opportunities. Most big advisory firms now offer Brexit advice, and smaller companies promote themselves as experts. One firm calls itself “Article 50 Associates,” named for the European Union treaty article that Britain will use to withdraw, and describes itself as “a specialist political consultancy focusing on helping individuals, enterprises, agencies and others navigate the twists and turns in the Brexit process.” |
| All this activity has started a race to hire what is known in the consultancy world as “Brexit talent.” Sometimes it almost seems as if the vote’s campaign teams, have largely transferred to the private sector, where former rivals often work side by side. And the vote’s outcome has not prevented some high-profile Remain campaigners from emerging as winners in the consultancy world. | All this activity has started a race to hire what is known in the consultancy world as “Brexit talent.” Sometimes it almost seems as if the vote’s campaign teams, have largely transferred to the private sector, where former rivals often work side by side. And the vote’s outcome has not prevented some high-profile Remain campaigners from emerging as winners in the consultancy world. |
| Teneo, an advisory firm that has a “Brexit client transition unit,” has taken on Craig Oliver, Mr. Cameron’s former director of communications, as well as William Hague, a former British foreign secretary. | Teneo, an advisory firm that has a “Brexit client transition unit,” has taken on Craig Oliver, Mr. Cameron’s former director of communications, as well as William Hague, a former British foreign secretary. |
| Portland Communications, a political consultancy and communications company, recruited Victoria Dean, a former British diplomat with experience in Brussels, to head up its so-called Brexit team; Henry Cook, a former aide to Michael Gove, who was a cabinet minister and Leave campaigner; James Starkie, the network manager of Vote Leave; and Amy Richards, a former press office manager for the Remain camp. | Portland Communications, a political consultancy and communications company, recruited Victoria Dean, a former British diplomat with experience in Brussels, to head up its so-called Brexit team; Henry Cook, a former aide to Michael Gove, who was a cabinet minister and Leave campaigner; James Starkie, the network manager of Vote Leave; and Amy Richards, a former press office manager for the Remain camp. |
| Adam Atashzai, a former deputy political director to Mr. Cameron, went to Finsbury, a communications and public affairs firm, while Mats Persson, a former adviser to Mr. Cameron on European issues, is with EY, the professional services firm. David Chaplin, the director of strategic communications for the Remain camp, has joined Hill & Knowlton, a public relations group. | Adam Atashzai, a former deputy political director to Mr. Cameron, went to Finsbury, a communications and public affairs firm, while Mats Persson, a former adviser to Mr. Cameron on European issues, is with EY, the professional services firm. David Chaplin, the director of strategic communications for the Remain camp, has joined Hill & Knowlton, a public relations group. |
| Edelman, a communications marketing firm (whose website asks clients, “Are you ready for Brexit?”), hired Lucy Thomas, a former deputy director of the Remain camp, and Will Walden, a former adviser to Boris Johnson, a major figure in the Leave camp who is now the foreign secretary. | Edelman, a communications marketing firm (whose website asks clients, “Are you ready for Brexit?”), hired Lucy Thomas, a former deputy director of the Remain camp, and Will Walden, a former adviser to Boris Johnson, a major figure in the Leave camp who is now the foreign secretary. |
| “It’s no surprise agencies are snapping up people from the Remain and Leave campaigns given the huge complexities of Brexit for businesses,” Ms. Thomas said. “For those of us who worked on the Remain side, it is bittersweet to have to advise on the big challenges ahead now that Brexit is a reality, but it is important that businesses have the best advice and are able to make their case loud and clear.” | “It’s no surprise agencies are snapping up people from the Remain and Leave campaigns given the huge complexities of Brexit for businesses,” Ms. Thomas said. “For those of us who worked on the Remain side, it is bittersweet to have to advise on the big challenges ahead now that Brexit is a reality, but it is important that businesses have the best advice and are able to make their case loud and clear.” |
| Generally, those who were employed by government as civil servants cannot lobby the government for two years, though that does not prevent them from giving strategic advice. | Generally, those who were employed by government as civil servants cannot lobby the government for two years, though that does not prevent them from giving strategic advice. |
| Though consultants normally charge less than trade lawyers, their fees can still run to several tens of thousands of pounds a month, with a top consultant asking more than $6,000 a day, industry insiders say. | Though consultants normally charge less than trade lawyers, their fees can still run to several tens of thousands of pounds a month, with a top consultant asking more than $6,000 a day, industry insiders say. |
| Some doubt that the Brexit bounce will last. Mr. Leaman noted that the health of the sector is related to the strength of the economy, which may suffer after the withdrawal. He also says that there are anecdotal reports that continental European companies are more reluctant to approach British companies for advice. But for now, he says, there is “a lot of activity.” | Some doubt that the Brexit bounce will last. Mr. Leaman noted that the health of the sector is related to the strength of the economy, which may suffer after the withdrawal. He also says that there are anecdotal reports that continental European companies are more reluctant to approach British companies for advice. But for now, he says, there is “a lot of activity.” |
| Mr. Stephenson, too, accepts that Brexit work will likely be limited to the next few years, but said he thinks that withdrawal from the European Union will mean more regulation in Britain’s Parliament, an area in which his company specializes. | Mr. Stephenson, too, accepts that Brexit work will likely be limited to the next few years, but said he thinks that withdrawal from the European Union will mean more regulation in Britain’s Parliament, an area in which his company specializes. |
| He rejected the idea that he is cashing in on uncertainty that he helped to create, arguing that he originally opposed holding the referendum but, when it was called, had to choose which side to support. | He rejected the idea that he is cashing in on uncertainty that he helped to create, arguing that he originally opposed holding the referendum but, when it was called, had to choose which side to support. |
| Mr. Stephenson still believes that Brexit will be good, not just for his company, but also for Britain. But he conceded that the views of his business partner, Mr. Gill, may be more nuanced. | Mr. Stephenson still believes that Brexit will be good, not just for his company, but also for Britain. But he conceded that the views of his business partner, Mr. Gill, may be more nuanced. |
| “He vacillates,” he said. “We don’t agree on everything, but that’s part of our strength. I think we do give a balanced picture.” | “He vacillates,” he said. “We don’t agree on everything, but that’s part of our strength. I think we do give a balanced picture.” |