Brexit News for Monday 5th February

Brexit News for Monday 5th February

Theresa May will refuse to offer a compromise to Tory MPs who plan to ‘wreck’ Article 50 Bill…

Theresa May will refuse to offer a compromise to Conservative MPs who plan to “wreck” the Article 50 bill this week by voting for a series of amendments, the Telegraph understands. Following the publication of a white paper and efforts by the Tory whips to find common ground with Conservative rebels the Prime Minister will hold her ground this week despite a rumoured rebellion within her party. Number 10 expects to win the crunch vote to trigger the formal exit of the EU, despite suggestions that as many as a dozen Tories could rebel and join with Labour, Liberal Democrat and SNP MPs to vote for “wrecking” amendments which could block its passage. – Daily Telegraph

  • May faces fresh challenge as MPs debate Brexit trigger – Bloomberg
  • The anatomy of the coming three-day battle for control of Brexit – Wales Online

…as Theresa May says she’s ‘unlikely to change terms’ of parliamentary vote on final Brexit deal…

Theresa May is unlikely to concede to any demand to change the terms of parliament’s vote on the final Brexit deal despite facing a possible Conservative revolt over the issue. A government source told the Guardian that calls for British MPs to be given a vote on the deal before it goes to the European parliament, and to be handed a say if no agreement is hammered out, were not practical. The prime minister was keen to accommodate Tory demands but suggested that this move would “hamstring” the government in negotiations with the EU27, the source said. They also argued it could plunge the government into “perpetual Brexit purgatory” if deals were repeatedly rejected. – The Guardian

…and Labour tells its MPs to cancel leave and prepare for three-line whip

Labour MPs have been told to cancel leave and be prepared for a three-line whip as the party enters another difficult week in which it will push for a series of amendments before a final vote on the Brexit bill. A copy of the week’s whipping schedule – sent to politicians and seen by the Guardian – confirms that the party will be asking all its politicians to line up together on Wednesday. But Jeremy Corbyn has hinted that frontbenchers who defy the official position will not face the sack, telling BBC Radio 4 that he is a “very lenient person”. Labour’s chief whip, Nick Brown, could face anger at Monday’s meeting of the parliamentary party over the issue amid questions about the meaning of a three-line whip if rebels remain on the frontbench. – The Guardian

Labour won’t block Brexit bill, Emily Thornberry says – BBC News

  • Labour shambles gets worse as Jeremy Corbyn hints he won’t sack more than a dozen frontbenchers who defied him in bid to block Brexit – Daily Mail
  • Labour will back Brexit bill even if they can’t alter it – The Times (£)
  • As Labour Party splits over leaving the European Union intensify, can the party survive Brexit? – City A.M.

Germany’s finance minister warns against “punishing” Britain and losing out on the City

The merits of the Square Mile should lead Europe to offer a “reasonable” deal on Brexit, according to Germany’s finance minister. Speaking to German newspaper Tagesspeigel, Wolfgang Schauble warned against seeking to “punish” the British for the decision to leave the EU. “We want to keep Great Britain close to us,” Schauble said. “The London financial centre, for example, serves the European economy as a whole. “London offers financial services in a quality that is not found on the continent. That would change a bit after a split, but we have to find reasonable rules here with the UK.” – City A.M.

‘£200m boost’ for pharma and aerospace

A hard Brexit could boost the pharmaceutical and aerospace sectors by more than £200 million, according to a study that reveals a surprise silver lining to leaving the single market. Drug companies and aeroplane parts groups represent two of Britain’s most thriving export sectors and executives in both industries had issued stark warnings about leaving the EU. However, analysis by Bain & Co, the consultancy, finds that a hard Brexit could improve their profit margins because under World Trade Organisation rules they will be protected from tariffs. They also stand to gain from a further fall in the value of the pound. – The Times (£)

Manufacturers reflect rising optimism in UK economy

The manufacturing industry is at its most optimistic in almost two years as business confidence picks up across the economy, according to surveys. A monthly business trends report from BDO, the accounting firm, and a quarterly business confidence monitor from the Institute of Chartered Accountants in England and Wales both show companies becoming more upbeat about their prospects. The surveys add to evidence that the UK is weathering the after-effects of the EU referendum and the election of President Trump better than expected. Peter Hemington, a partner at BDO, said: “The UK economy seems to be remarkably resilient. British businesses are surprisingly confident about the short term, encouraged by the opportunities our cheaper currency and a better-performing global economy have created. These have provided a much-needed, short-term boost for our economy, particularly our manufacturers.” – The Times (£)

Scotland could stay in single market and the UK post Brexit, says Scottish Secretary

The Scottish Secretary said he was “open-minded” about proposals, put forward by the SNP government, to remain members of the European single market while also staying in the UK as it leaves to the EU. However, the Cabinet minister added that it would be “better” to proceed with Theresa May’s plans of achieving a fresh arrangement with Europe for the whole United Kingdom. Holyrood ministers are pushing for a place in the European Free Trade Association (EFTA) where, like Norway, Iceland and Liechtenstein, they may be able to stay part of the single market. By continuing to partake in the EU’s Internal Market, such a deal would likely see Scotland remain subject to some Brussels legislation. – PoliticsHome

  • Support for a bespoke deal on Brexit – The Times (£)
  • MSPs urge bespoke immigration deal for Scotland post-Brexit – STV

BBC receives millions in EU cash for filming and broadcasting projects

The British Broadcasting Corporation has picked up more than £2.3million in funding from the European Union in three years, Express.co.uk can reveal. The corporation has received the staggering amount of cash from the EU Framework Programme for Research and Development projects, as revealed in a freedom of information request… Jayne Adye, Director of cross-party campaign group Get Britain Out, said: “The BBC already gets an enormous amount of money from the Great British Public, and it is extraordinary to see it getting even more by the EU backdoor… The BBC is supposed to be impartial and should not be receiving money from those it is supposed to scrutinise.” – Daily Express

Benjamin Netanyahu seeks closer ties with Britain in face of Iran’s ‘aggression’

Israeli Prime Minister Benjamin Netanyahu has said he will seek to “tighten” relations with the UK in the face of “extraordinary aggression” from Iran ahead of a meeting with Theresa May on Monday. Speaking before flying to Britain Mr Netanyahu, who is also preparing to visit Donald Trump’s new administration in Washington DC, said: “We are in a period of diplomatic opportunities and challenges. “The opportunities stem from the fact that there is a new administration in Washington, and a new government in Britain. “I intend to speak with both of them about tightening relations, between each side and Israel and trilaterally.” – Daily Telegraph

EU looks on bewildered as South Africa vows to agree trade deal with Britain before Brexit

Eurocrats repeatedly refused to be drawn on whether they would attempt to punish the UK over its plans to start formal talks whilst it is still a member states, something which is strictly prohibited under EU treaties. Yesterday South African trade minister Rob Davies vowed to begin negotiations on a pact as soon as possible, stating that he wanted “a predictable trade and investment environment for mutual benefit for both parties”. – Daily Express

Theresa May orders civil service to allow tax cuts in tough threat to EU

After a series of threats to “punish” the UK from Brussels leaders and warnings that Britain will have a bad deal, it is understood that Mrs May has decided to show them she is serious about using low tax to take on the flagging euro zone economy. By ordering civil servants to draft laws the government intends to signal that britain could become a tax haven and drag big business and investments away from the EU if it plays hard ball in the negotiations. – Daily Express

Matt Ridley: Why don’t the EU’s pensioners in the Lords have to declare their interest?

‘A Bill to confer power on the prime minister to notify, under Article 50(2)…’. When it comes to the House of Lords, some of those trying to amend or delay the bill will be paid pensioners of the European Commission. Peers are obliged to declare any interest that ‘might be thought by a reasonable member of the public’ to influence the way they discharge their parliamentary duties — unless it is an EU pension.  – Matt Ridley for The Spectator

Ken Clarke on Brexit: ‘I’ve never seen anything as mad or chaotic as this’

Eighteen hours after betraying the will of the British people (© several newspapers) by voting against triggering article 50, Ken Clarke is sitting at his paper-stacked desk in his small parliamentary office, ploughing through the government’s white paper that supposedly lays out more details of its plans for departure. It’s a little more than an hour since David Davis, the Brexit secretary, made a statement to the Commons and published the document online, and Clarke, having secured a paper copy, has only got as far as page 10. He wasn’t in the Commons but watched the brief statement and responses on TV. What did he make of it? “It’s quite obvious that nobody could think of what to ask because nobody has had a chance to read it,” he says. – The Guardian

Sir Keir Starmer MP: The battle for Britain’s future starts now

Pretending the referendum can be ignored is ultimately a dead end for any party that seeks to govern or to speak for the whole country. All those who, like myself, campaigned passionately to Remain must now step up to the challenge of shaping a post-Brexit future. That is why Labour has consistently argued that jobs and the economy must come first in the Article 50 negotiations: businesses and working people have a shared interest in new relationships with the EU that ensure our economy can succeed and flourish in the future. Tariff and barrier-free access to the single market, along with regulatory alignment, may not sound particularly interesting topics but they should be the government’s priority. And the government needs to deliver. – Sir Keir Starmer in The Times (£)

Nicky Morgan MP: What happens if May doesn’t get a Brexit deal?

The government’s pledge for a vote on a final deal is the right thing to do but it leaves a lacuna. What if there is no deal? What if there is no agreement to put to either the British or the European parliaments for approval? In the course of debate on Tuesday MPs will be pressing the government to acknowledge this gap and to give assurances that parliament will be involved towards the end of the Brexit process, even if it appears no deal is likely to be agreed. – Nicky Morgan MP in The Times (£)

Brexit news in brief

  • Bank of America Merrill Lynch is looking for new space in the City despite Brexit uncertainty – City A.M.
  • Brussels refutes claims that it will make UK sport teams wear EU flag – EurActiv
  • Migrant loss threatens a staffing crisis – The Times (£)
  • Caroline Flint puts the boot in over Diane Abbott’s ‘Brexit flu’ – The Spectator
  • Local voting figures shed new light on EU referendum – BBC News
  • ‘Swiss franc on steroids pound surge predicted as Brexit doom-mongering fears diminish – Daily Express