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The Report of the Iraq Inquiry
257.  On 10 January, the AHGI had agreed that:
The Treasury should review its November 2002 paper on the impact of conflict
on the UK economy (see Section 6.4).
The DTI would revisit its October 2002 paper on the oil market (see Section
10.3) and look at the potential impact of conflict on UK industry.
The Department for Transport (DfT) would review its November 2002 transport
paper (see Section 6.4).
The Cabinet Office would circulate the latest version of the CCS paper on the
potential impact on the UK of operations against Iraq (see Section 6.4) for
comments from departments.
The CCS would draft an Action Plan to be circulated to the AHGI for comment,
setting out actions the Government would need to take should conflict be
imminent.
258.  Mr Jonathan Stephens, Treasury Director Public Services, circulated a revised
draft of the CCS paper to Permanent Secretaries on 20 January.126 He invited each
department to identify key actions that needed to be taken to manage and mitigate risks.
259.  Mr Stephens also announced the creation of a Domestic Implications Sub-Group
of the AHGI (subsequently known as the Stephens Group), which would meet for the
first time on 24 January.
260.  The Stephens Group continued to work on the domestic implications of military
action during February and March.127
261.  On 19 March, the Private Office of Mr Gus O’Donnell, Treasury Permanent
Secretary, sent a paper by Mr Stephens on the domestic implications of military action
to Permanent Secretaries.128 The paper stated that initial work on the issue had identified
priority risks requiring further work. Those had been grouped into three cross-cutting
areas:
public behaviour and community cohesion;
health and public service implications of military requirements; and
fuel disruption, tourism and unemployment.
126 Letter Stephens to Phillips, 20 January 2003, ‘Iraq: Domestic Implications of Military Action’ attaching
Paper [unattributed and undated], ‘Domestic Impact of an Iraq Operation – Risk to PSA Targets’, and
Paper Civil Contingencies Secretariat Assessments Team, 17 January 2003, ‘Potential Impact on UK of
Operations Against Iraq’.
127 Minute Dodd to Manning, 17 March 2003, ‘Ad Hoc Group on Iraq’.
128 Email Martin to Permsecs, 19 March 2003, ‘Domestic Implications of Military Action’ attaching Paper
Stephens, ‘Domestic Implications of Military Action with Iraq – Next Steps’.
356
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