Brexit Update: A Breakthrough Or Delay Tactics?

The United Kingdom was almost heard collectively groaning as Minister Theresa May announced last night that her thrice-defeated Brexit deal…

15 May 2019

Brexit Update: A Breakthrough Or Delay Tactics?

The United Kingdom was almost heard collectively groaning as Minister Theresa May announced last night that her thrice-defeated Brexit deal will go back to Parliament for lawmakers to consider again in the week beginning June 3.

Parliament has now seen three “meaningful” votes on the completely unaltered Brexit deal and numerous (unsuccessful) votes to make amendments and MPs seem to be surprised that calls for a second referendum grow louder each day.

However, the purpose of the fourth vote is less than clear, having been outlined as deciding on the “key legislation needed to put the UK’s departure from the EU into effect”. In other words, the mechanics of making it happen. However, many people are asking what has actually been negotiated successfully in Brussels since 2016 – if anything at all?

After Theresa May’s meeting with Jeremy Corbyn on Tuesday night, a spokesman commented: “This evening the prime minister met the leader of the opposition (Jeremy Corbyn) in the House of Commons to make clear our determination to bring the talks to a conclusion and deliver on the referendum result to leave the EU”.

A compromise between the two parties was not impossible but talks could not continue “indefinitely”, according to Foreign Secretary Jeremy Hunt. The move to bring the Brexit bill before parliament in early June is being seen as imposing an effective deadline on the discussions with the opposition. Labour is reportedly set to oppose the bill unless the talks bring agreement.

The Withdrawal Agreement on the terms of the UK’s exit, and a Political Declaration outlining a framework for future ties, had been negotiated by London and Brussels and approved by the 27 other EU governments.

The UK voted to leave the EU by 52% to 48% in a June 2016 referendum. The result has increased strains between the UK’s individual countries: England (53%) and Wales (52.5%) voted to leave, whereas Scotland and Northern Ireland voted by 62% and 56% respectively to remain in the EU.

Theresa May Faces Ultimatum: Set a Brexit Date or Quit

Executive members of the 1922 Committee are preparing to ask Theresa May to step down immediately if she fails to set out a timetable for leaving Downing Street. Up to 10 members of the powerful group of senior Tory MPs have discussed telling the prime minister to name a date for the end of her premiership or face immediate demands to go, sources confirmed.

May is due to appear before the committee on Thursday as the party struggles to contain widespread anger among its MPs and members at May’s failure to lead the UK through Brexit. She indicated earlier this year that she would resign once her Brexit deal with Brussels has been passed by MPs – a promise that seemed to persuade a number of pro-Brexit Tories to back the deal, among them Boris Johnson and Jacob Rees-Mogg.

Several key committee members, including the chair, Sir Graham Brady, and the treasurer, Sir Geoffrey Clifton-Brown, have said May should draw up a clear schedule for her departure. Other executive members, including the South East Cornwall MP Sheryll Murray, have discussed plans to tell her to stand down immediately if she has not arrived at the meeting with a short unambiguous timetable for departure. “If she has to be told to her face, so be it. Enough is enough,” said one source.

The 1922 executive meeting is also expected to return for a third time to the issue of whether Tory leadership rules should be changed to allow a fresh challenge to the prime minister. May’s decision to work with Labour on a compromise to deliver Brexit seems to have caused many Tories to lose their patience. A No 10 source has suggested that a temporary customs deal with a clear exit clause could be a possibility.

Thirteen former Cabinet ministers and Brady have written to May warning that “any customs union” with Labour would forfeit the “loyal middle of the Conservative party”. May had been keen to table the withdrawal agreement bill before the European elections on 23 May, but the mood of Conservative MPs has been hardening against it, even without any customs union concession. Now the agreement bill has been tabled for June 3rd.

Economic uncertainty continues in the UK as Brexit talks continue to take place but without any resolution. When you are unsure of the financial future, it is always the safest idea to invest your capital in fixed income products, preferably backed by tangible assets in the same way our Secured Partnership Investments (SPI) are. An SPI gives you the opportunity to protect your money from inflation or sterling weakness for the short-term while offering the security of a valuable corporate guarantee. Find out more about protecting your capital from economic uncertainty by contacting an adviser today.

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