May Offers Parliament Vote to Delay Brexit If No Deal Agreed

LONDON (Capital Markets in Africa) – Theresa May promised members of Parliament a vote to delay Brexit and block the potential economic disaster of a no-deal split with the European Union if they reject her divorce agreement next month.

May said she will carry on trying to reach a deal in Brussels so the U.K. can leave as planned on March 29. But if that isn’t possible, Britain will not lurch out of the club of 28 countries without Parliament’s agreement, she said. The pound surged.

“The United Kingdom will only leave without a deal on 29 March if there is explicit consent in this House for that outcome,” May told the House of Commons on Tuesday.

The option of a delay is a significant climb-down for the prime minister. But her tactical move looks to have averted mass resignations of pro-EU ministers in her team, and prevented the crushing defeat that almost certainly awaited her in Parliament on Wednesday.

There’s also a chance her gamble could encourage pro-Brexit politicians to get behind her unpopular exit agreement. With Labour now backing a second referendum, and May opening the door to a delay, the prospect of losing Brexit altogether could convince at least some of euro-skeptic Tories to get on board.

Still, there’s a risk it prompts a destabilizing backlash from those euroskeptic Conservatives.

Under the prime minister’s timetable:

• By March 12 at the latest, the House of Commons will vote on whether to accept or reject her EU withdrawal agreement.
• If MPs reject that deal, on March 13 at the latest, they will vote on whether to leave the EU with no deal.
• If Parliament votes against a no-deal Brexit, that option will be off the table and the Commons will vote on a short extension to the March 29 deadline — probably until the end of June at the latest.

The premier made her move under growing pressure from critics inside her government in an attempt to head off a rebellion from as many as 20 ministers.

The rebels were terrified that the U.K. could fall out of the bloc without a deal, and were threatening to disobey May’s orders and vote for a plan on Wednesday which would have taken control of the Brexit process out of her hands.

On Tuesday afternooon, some of the potential rebels appeared to be coming back into line.

“Common sense has prevailed and the country’s interest has been put first. The Prime Minister’s statement is welcome and timely — given where Brexit was potentially heading,” defense minister Tobias Ellwood said in an interview. “But crashing out has only been temporarily avoided and there is still much work to be done to guarantee the threat of a no deal Brexit is removed.”

Nick Boles, one of the Conservatives who worked with Labour’s Yvette Cooperon a move to tie May’s hands, said his group will still put down rival proposals ahead of Wednesday’s vote. But the aim will be to get “assurances” from ministers during the Commons debate before voting begins. The implication is that if the assurances are satisfactory, Boles and his colleagues would withdraw their proposal.

“Very important that Parliament has forced the prime minister to agree to votes which can prevent a damaging and chaotic No Deal,” Cooper wrote on Twitter. “But we will keep up the pressure.” The prime minister “still hasn’t said how government would vote on No Deal; that’s still irresponsible for businesses, public services and families,” Cooper wrote.

Tory rebel Oliver Letwin said there was now “no need” for action to take control of Brexit policy away from May. And Business Minister Richard Harrington said he was now reassured, so wouldn’t be resigning to vote against the premier this week.

During a two-hour session in Parliament, May made it clear she does not want to extend the EU’s negotiating deadline and still aims to get an agreement in Brussels by the end of March.

“I know Members across the House are genuinely worried that time is running out,” the prime minister said. “I know too that members across the House are deeply concerned by the effect of the current uncertainty on businesses.”

May and her team emphasized that any delay will be for the shortest possible time, because otherwise the U.K. would need to take part in European Parliament elections — and that would be a betrayal of the 2016 referendum result. However, parts of the EU are pushing for any delay to be as long as 21 months.

“A short extension — not beyond the end of June — would almost certainly have to be a one-off,” May said.

Source: Bloomberg Business News