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May to soften Brexit stance as UK economy shrinks

United Kingdom Prime Minister Therese May visits World Economy Forum in Davos, Switzerland. ..Bilateral with Alain Berset.
11 February 2019 | UK NEWS

May sent a letter to Corbyn over the weekend outlining proposed legal commitments to workers’ rights and environmental standards in a bid to win his support for her Brexit deal. It’s looking increasingly likely May will soften her stance on Brexit by accepting Labour’s demands of customs union membership, in a bid to get her deal through Parliament. She will update MPs tomorrow about progress on Brexit talks.

In economic news, the UK economy contracted by 0.4% in December. This poor end of year performance means 2018 was the slowest year for British growth since 2012. Hammond responded by claiming the UK economy is fundamentally strong, and he does not foresee a recession. 

What’s going on in and around Westminster:

– Brexit Secretary Stephan Barclay travels to Brussels for a meeting with Michel Barnier today, alternatives to the Irish backstop will be a priority talking point. 

What we’re reading on the internet:

– The battle over Britain’s newest student movement – BBC

– If Britain wants Europe to listen, it must learn to speak European – The Guardian  

– Opportunities for global Britain lie in the stars – City AM

Project After

8 February 2019 | UK NEWS

A group of high-ranking civil servants have drawn up plans to reinvigorate the British economy in the event of no deal Brexit, named “Project After”. The plan includes sweeping tax cuts and government support for export companies, with particular support proposed for the agricultural and pharmaceutical industries. 

Juncker has stressed that the EU will not reopen talks on May’s withdrawal agreement. His next meeting with May is set for the end of the month.

Owen Smith and Luciana Berger have refused to rule out resigning the Labour whip over Corbyn’s Brexit position, whilst Berger may face a vote of no confidence from her local party. 

In economic news, the BoE predicts UK growth in 2019 to be the lowest since 2009.

What’s going on in Westminster:

– May flies to Dublin to discuss NI and Brexit with Varadkar. 

– Former civil servent Bob Kerslake will speak at a People’s Vote event.

What we’re reading on the internet:

– Why disaster capitalists are praying for no deal – The Guardian

– “Project After” – FT

– Should we regulate sex work? – 1828

Day of reckoning in Stormont

6 February 2019 | UK NEWS

Theresa May is in Stormont today, meeting political leaders to discuss Brexit and possible changes to the backstop. This will likely anger Tory Eurosceptics who stated they will only support May if the backstop is removed entirely. May’s expected to put down a motion on her deal by next Wednesday, with amendments to be voted on the following day. 

Trade Secretary Liam Fox is considering cutting import tariffs to zero in the event of a no deal Brexit. The move would keep prices low for consumers, but damage British industry. Labour’s Deputy Leader Tom Watson has attacked big tech companies, stating a Labour Government would create a new technology regulatory body, with the power to break up tech companies if they did not curb harmful content.

In cultural news, plans for a Margaret Thatcher statue to be erected in her hometown of Grantham have been approved despite concerns of vandalism. 

What’s going on in Westminster:

– PMQs took place this afternoon between David Lidington and Emily Thornberry. 

What we’re reading on the internet:

– House of Commons Public Accounts Committee Report on local government spending – Parliament

– Trump and Putin have relaunched an arms race. Hug Europe close, Britain – The Guardian

– UK growth stalls due to Brexit – FT

May gains support from Labour

4 February 2019 | UK NEWS

30 Labour MPs are thought to be prepared to support May’s Brexit deal. John McDonnell has rallied against this, saying Labour MP’s votes will not be bought by funding promises for their constituencies. 

In economic news, Nissan chooses Japan over the UK to build its new X-Trail car. Business Secretary Greg Clark stated it’s a no deal Brexit warning sign. 

What’s going on in Westminster:

– Tory MPs will meet this week to discuss the “Malthouse Compromise” where alternatives to the Irish backstop will discussed. Brexit Secretary Stephen Barclay. 

What we’re reading on the internet:

– The future of the Scottish oil and gas industry – Scottish Affairs Select Committee

– MPs must compromise before Brexit tears the country apart – FT

– Rebuild the faded towns of Britain to end national malaise – The Guardian

Cooper and Brady seek to alter the Withdrawal Agreement

28 January 2019 | UK NEWS

May faces two key battles for her Brexit deal tomorrow.

The first is the Cooper Amendment – if it passes Parliament, it would allow MPs to delay Brexit in the event of no deal. The second is the Brady Amendment, which is aiming to replace the Irish backstop with alternative arrangements to avoid a hard border in NI. Number 10 has conceded that May’s current deal is incompatible with the Good Friday Agreement. 

On the continent, EU Deputy Chief Negotiator Sabine Weyand has stated the high likelihood of the UK leaving the EU with no deal, blaming the UK Parliament. Whilst in Scotland, Nicola Sturgeon has responded to the sexual crime charges levied against her former boss Alex Salmond by stating the case for Scottish independence is bigger than just one person.

How can May be sure her agreement is incompatible with the Good Friday Agreement, when she was the one who tried to get it through Parliament? If you have any thoughts on this contact us via e-mail or Twitter. 

What’s going on in Westminster:

– MPs vote on the Cooper and Brady amendments tomorrow. 

– Nicola Sturgeon will address a Burns Night dinner hosted by the Lord Mayor of London. 

What we’re reading on the internet:

– Rail privatisation: UK looks for secret of Japan’s success – FT

– Mobile operators with London’s fastest download speeds – City AM

– Public procurement organisations fear GDPR more than Brexit – Guido

May deal gains support

25 January 2019 | UK NEWS

The Chairman of the 1922 Committee, Graham Brady, has tabled the most recent amendment to May’s Brexit deal, supporting the agreement provided the Irish backstop is replaced. The amendment signals murmurs of support for the deal amongst Tory Eurosceptics; Jacob Rees-Mogg also stated he would support it provided the backstop is removed entirely. On the pro-European arm of the Party, Work and Pensions Secretary Amber Rudd has refused to rule out resigning unless Tory MPs are allowed a free vote on Yvette Cooper’s amendment, which could extend Article 50. 

In other news, the National Audit Office have announced UK taxpayers will likely pay £24bn to dismantle the oil infrastructure in the North Sea whilst Hitachi Chairman Hiroaki Nakanishi has waded into the debate on UK nuclear policy, stating the Wylfa nuclear project in Wales should be nationalised. 

In more serious political news, former Leader of the SNP Alex Salmond has been charged with a string of sexual crimes, including two counts of attempted rape. 

What’s going on in Westminster?

– Both the House of Commons and House of Lords are not sitting today. 

– May has held meetings with trade union leaders Len McCluskey and Frances O’Grady at Downing Street to discuss Brexit. 

What we’re reading on the internet:

– The crisis in Venezuela and the response from the British political left – City AM

– Why is Dyson moving its HQ to Singapore? – FT

– The Queen wades in on the Brexit debate – The Guardian

The lady’s not for delaying

23 January 2019 | UK NEWS

Theresa May has rallied against the suggestion of delaying Brexit. Shadow Chancellor John McDonnell hinted Labour will support a cross-party bid to extend Article 50, therefore delaying Brexit to avoid no-deal. No.10 will tell Tory MPs to vote against the cross-party bid. EU Commission Chief Spokesperson Margaritis Schinas has confirmed no-deal Brexit would result in a hard border in Northern Ireland. 

Speculation continues to mount that May might call a General Election to break the Brexit impasse, although internal party polling has found the Conservatives would lose to Corbyn’s Labour. 

In economic news, Sony announced it will move its HQ from London to Amsterdam whilst Dyson announced its HQ will move from England to Singapore, although Dyson has confirmed no UK jobs will be lost. 

Figures from the ONS have found UK employment is now at an all-time high whilst Sterling rises above $1.30 after Labour suggested they will block a no-deal Brexit. 

What’s going on in Westminster?

– May addressed MPs at PMQs this afternoon.

– May to meet with First Ministers of Scotland and Wales. 

– Jacob Rees-Mogg to speak at an event promoting world trade post-Brexit, hosted by the Bruges Group.

What we’re reading on the internet:

Should we welcome proposals for the Tulip Tower? – City AM

A truckers guide to post-Brexit disruption – FT

The EU is determined to punish us – Conservative Home

Has anything actually changed?

21 January 2019 | UK NEWS

Theresa May set out her Brexit Plan B in an address to the Commons this afternoon, after her Plan A was decisively rejected by Parliament last week.

Has anything changed?

May will now pursue:

– A more flexible negotiation strategy.

– Stronger safe guards on workers’ rights.

– Stronger safe guards on the environment.

– A legal commitment to Northern Ireland. 

– Ending the £65 fee for EU citizens to stay in the UK post-Brexit.

May also used the address to attack Corbyn for refusing to discuss Brexit options with her and to reaffirm her opposition to a second referendum. Critics have suggested too little has changed from May’s Plan A Brexit. Corbyn called on the PM to ‘accept reality’ and scrap her red lines. 

In other political news, Domestic abuse victims in England and Wales will receive a range of new measures to protect them whilst Diana Abbot continues to assert she was mistreated on BBC’s Question Time by host Fiona Bruce.

In economic news, Rolls-Royce are in talks with Chinese company CGN to supply the company with equipment for a nuclear plant it hopes to build in Essex. Whilst the ONS has found British shoppers are getting less goods for their money in what’s described as ‘shrinkflation’. 

What’s going on in Westminster? 

– May delivered statement to the Commons outlining her new Brexit plan this afternoon.

– May had lunch with New Zealand PM Jacinda Ardern earlier today. Post-Brexit trade was a priority discussion point. 

What we’re reading on the internet:

The UK continues to educate many of the world’s leaders – The Times

Demand for London office space rises – City AM

England’s ‘rebel’ pro-Brexit spirit – The Guardian

Brexit misery for May and Corbyn

18 January 2019 | UK NEWS

Twenty Tory MPs have warned May they will quit the Government to stop a no-deal Brexit. Whilst Corbyn faces threats of resignation from Labour front bench if he backs a second EU referendum.

May travels to Chequers today to prepare a statement due to be delivered on Monday. It will outline the Government’s next steps on Brexit. Debate regarding amendments to May’s Brexit plan begin on Monday 21st, with MPs voting on Tuesday 29th. 

Trade Secretary Liam Fox rallies against the possibility of customs union membership, stating it will not deliver Brexit. He has been subject to criticism lately; a Whitehall memorandum found the UK has not yet finalised most trade deals needed to replace the EU’s existing agreements post-Brexit. 

Further north, Sturgeon continues to pursue the prospect of another Scottish independence referendum. She will set out her plans for one in the coming weeks. 

In economic news, Hitachi has officially shelved it’s plans for a nuclear plant in Wales. The decision has risen serious questions about the future of UK nuclear policy. In London, business lobby groups have stated their objection to delaying Brexit, unless Parliament finds consensus on an alternative Brexit plan.

What’s going on in Westminster? 

The House of Commons returns on Monday 21st January. 

Cabinet Secretary Mark Sedwill has held meetings with various Government departments to prepare for the possibility of a snap General Election if it is needed to break the Brexit impasse.

What we’re reading on the internet:

Is the EU prepared for no deal Brexit? – LSE

Hitachi’s nuclear withdrawal hits Welsh job prospects – FT

Brexiteers optimistic May will stand firm on customs union – The Guardian

Vote of no confidence incoming

16 January 2019 | UK NEWS

After last night’s vote on May’s Brexit deal ended in historic defeat, the PM and her Government will face a vote of no confidence at 7pm this evening. Assuming May survives the vote, she intends to hold cross-party talks on next Brexit steps in the coming days. Chancellor Philip Hammond has suggested the Government extends article 50. 

There is growing acknowledgement in Brussels that the EU will have to offer further concessions to May to ensure a Brexit deal passes UK Parliament. However, EU Council President Donald Tusk has suggested the UK should cancel Brexit whilst EU Chief Negotiator Michel Barnier asserts May’s rejected Brexit deal is the best compromise. 

In economic news, inflation has fallen to its lowest level in two years according to a report published by the ONS , It currently stands at 2.1%. In yet another blow to the beleaguered retail industry, the Christmas period failed to boost UK consumer spending 

What’s going on in Westminster? 

May faced PMQs this afternoon. She is now set to hold a meeting of the Government’s Housing Implementation Task Force before the vote of no confidence this evening.

Think-tank the UK in a Changing Europe will hold a Brexit event later today, with Tory MP Jacob Rees-Mogg expected to attend. Whilst the Henry Jackson Society will hold an event on the Future of Europe in Millbank Tower.  

What we’re reading on the internet:

An argument for a review of UK nuclear policy in light of Hitachi’s concerns – here

How does a vote of no confidence work? – here

Guardian journalists’ verdict on how to break the Brexit impasse – here

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