💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

May Considers Latest Gamble to Get Brexit Done Within Next Month

Published 04/23/2019, 04:13 PM
Updated 04/23/2019, 04:30 PM
© Reuters.  May Considers Latest Gamble to Get Brexit Done Within Next Month

(Bloomberg) -- Theresa May is considering a new tactic in her desperate bid to deliver Brexit.

The prime minister’s deal has been rejected three times by Parliament, and if she doesn’t get it done within a month she’ll have to fight European elections that will be punishing for her party.

So instead of putting the deal itself back to lawmakers, she’s going to try her luck with a proxy instead -- a piece of legislation that would enshrine her deal in law.

It’s a gamble, and she’s lost many of those already, but the idea is that her opponents will be able to add their own Brexit wishes to the legislation with amendments. Once they’ve done that it might stand a chance of passing, according to one person familiar with government thinking.

She’s pinning her hopes on Labour members of Parliament voting for the bill, even though talks with the Labour leadership aimed at finding a Brexit consensus have so far failed to make progress.

If she fails, then more chaos and upheaval follows, and there’s no chance she can deliver Brexit in time to avoid EU elections. But there’s little to lose by trying -- if she doesn’t put the bill to Parliament in the next couple of weeks, there’s no way the U.K. can leave before the poll.

‘Soon as Possible’

The cabinet on Tuesday agreed that the Withdrawal Agreement Bill should be put before the House of Commons “as soon as possible,” May’s spokesman James Slack told reporters. The question, he said, was how to ensure its “safe passage.”

Ministers are split on the tactics. Ministers including Home Secretary Sajid Javid made the case for bringing the bill forward quickly, according to one person familiar with the meeting. But in reply, Chancellor of the Exchequer Philip Hammond pointed to dangers: The bill might be voted down. If that happens, May wouldn’t be able to bring it back without ending the current parliamentary session and starting a new one. That involves time-consuming process and procedure, though not a new election.

Parliament has rejected May’s Brexit deal three times. The only reason for May to hope that the Withdrawal Bill could have a better chance is that its passage would allow different parliamentary factions the chance to amend it to include their preferred Brexit outcomes. That’s the argument for doing it, according to one person familiar with the government’s thinking.

‘Serious,’ ‘Difficult’

One person familiar with May’s thinking said the decision about whether to bring forward the Withdrawal Bill would be made depending on developments in the next few days as talks with Labour continue.

The bill could be a vehicle for carrying commitments that the opposition Labour Party is asking for on employment rights and environmental protections.

Although May told cabinet that these talks were “serious,” Slack said she also said they were “difficult in some areas.” These include the question of a customs union with the EU. For Labour, that’s a minimum requirement. For May, it’s unacceptable. Two people involved with Labour’s side of the discussions said Tuesday that the party was a long way from being able to agree anything with the government.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.