Brexit News for Tuesday 24th January

Brexit News for Tuesday 24th January

Supreme Court to rule on Article 50 case this morning…

The Supreme Court is to deliver its long-awaited judgment on whether ministers or Parliament have the power to start the Brexit process. In what is being seen as the most significant constitutional case in decades, the 11 justices will decide if the Prime Minister can use inherited prerogative powers to trigger Article 50 – the formal mechanism for leaving the EU – without consulting Parliament. The Government is believed to be anticipating losing its appeal against an earlier High Court ruling which said MPs should be involved. – Sky News

  • Article 50: What are the judges ruling about? – The Times (£)
  • Brexit ruling: what the Supreme Court verdict could mean for May – The Guardian
  • Five things to watch for in the Supreme Court’s Brexit ruling – Faisal Islam for Sky News
  • Brexit in the balance: exactly what is at stake in the Supreme Court? – Joshua Rozenberg for The Spectator

…with Theresa May preparing to publish a short bill in Parliament if the Government loses…

Government lawyers, who were led by Jeremy Wright, QC, the attorney general, are expecting to lose and one or more draft bills have been prepared to rush out, in the hope that parliamentary approval can be obtained for the triggering of Brexit by giving notification as required under Article 50 of the Lisbon treaty. The prime minister has insisted that she is still on course to start the two-year exit procedure by invoking Article 50 by the end of March. However ministers are concerned that any bill, however short and narrowly focused, will be used by pro-Remain MPs and peers to table amendments that could delay the timetable. – The Times (£)

  • No10 puts plans in place to ensure Brits’ get Brexit within nine weeks regardless of Supreme Court ruling – The Sun
  • Theresa May must take action ‘immediately’ if judges uphold Brexit challenge, Tory MPs say – Daily Express
  • Lawyers warn May against short Brexit bill if Supreme Court says vote is needed – The Guardian
  • Hardline Lib Dem lawyers to fight Brexit ‘coup d’etat’ – Law Society Gazette
  • Brexit Bill will be essential if Supreme Court defeat the Government over Article 50 – The Sun Says
  • Whatever the Supreme Court judges say, we must get on with Brexit – Daily Express editorial
  • Don’t panic, Leavers. Britain’s going Out – however the Supreme Court rules today – Christopher Howarth for ConservativeHome
  • The Supreme Court’s Article 50 verdict is unlikely to derail Theresa May’s Brexit timeline – City A.M.
  • Why Brexit court case won’t change much – Alex Spence and Tom McTague for Politico

…and the devolved Parliaments threatening to block Brexit if they are given the chance

Politicians in Northern Ireland are preparing measures to block the UK’s withdrawal from the European Union, if the Supreme Court rules that Stormont must be given a say on whether to trigger Article 50. Unlike the High Court hearing of the case, which considered only if MPs at Westminster would be entitled to a vote, the Supreme Court granted leave for arguments to be made on behalf of the devolved administrations in Scotland, Wales and Northern Ireland, stating they must approve the Prime Minister’s Brexit plans. Leading politicians at Stormont have told The Independent that if the Supreme Court rules they are entitled to vote on Article 50, they will move to block it. – The Independent

MSPs will get a vote over triggering Article 50 to leave the European Union “no matter” what the Supreme Court says, the First Minister [Nicola Sturgeon] has vowed… The Scottish Government’s top lawyer, the lord advocate, intervened in the four-day hearing to argue the Scottish Parliament should have to give its consent to the triggering as it will change the devolved settlement. – STV

Jeremy Corbyn plans Article 50 bill amendment to force Theresa May’s final Brexit deal back to Brussels if Parliament opposes it…

Mr Corbyn is planning to table an amendment which would formally require the Government to commit to a second vote on the final terms of any deal before Britain leaves the EU. Labour wants the Government to hold the vote early enough for the deal to be sent back to Brussels so it can be “improved or amended”. Eurosceptic Conservative MPs said that the the proposal is “absurd” and highlights Mr Corbyn’s “muddled and chaotic thinking” on Brexit. Iain Duncan Smith, the former Work and Pensions Secretary, said: “The deal is the deal, it’s a take it or leave it option… It is absurd. It is quite clear once they’ve been through all these tortuous negotiations that will be it.” – Daily Telegraph

  • MPs’ hands will be tied regardless of Article 50 ruling – The Times (£)

…as Welsh politicians publish plan calling for UK to stay in the single market and keep free movement

Welsh First Minister Carwyn Jones and Plaid Cymru leader Leanne Wood today unveiled a 64-page paper calling for the UK to remain in the EU’s Single Market and to continue the bloc’s freedom of movement rules… This would involve the UK becoming a member of the European Free Trade Association (EFTA) and European Economic Area (EEA) in order to achieve “full and unfettered access to the Single Market”, the paper states… Ms Wood insisted her Plaid Cymru party “value” EU immigration rules, adding: “We do not accept free movement is a problem.” – Daily Express

The white paper has already been dismissed by the leader of the Welsh Conservatives, Andrew RT Davies. “After seven months of flip-flopping, dithering and denial, the leftwing political establishment in Wales has clubbed together a late, half-baked plan in the effort to remain relevant and credible – ignoring many of the reasons why people voted to leave the European Union,” he said. “Sadly, this ‘plan’ for Brexit has only sought to appease their own in the Cardiff Bay bubble – lacking serious consensus across the political spectrum and showing a blatant disregard for the wishes of the Welsh public.” – The Guardian

  • If the single market is so great for Wales, why is it so poor? – Matthew Lynn for The Spectator Coffee House
  • The UK’s economy is London-centric. Brexit is the chance to change that – Laurie Macfarlane for The Guardian

Polling shows that even Remainers think May’s Brexit plan respects the referendum result

Theresa May’s Brexit plans seem to be going down well with the British people. While Remainers are concerned about what it would mean for the economy, some 74 per cent of Brits want control over EU immigration and 57 per cent want to leave the single market and replace it with new deals… They’re happy to maintain the open border with the Republic of Ireland, to guarantee the rights of EU citizens living in Britain, and to continue to share security information… When asked if they think that May’s plans respect the result of the referendum, 62 per cent of people replied positively – including 56 per of Remainers. They do so grudgingly, with only 28 per cent of them being personally happy with the outcome. But they still accept that May’s approach is respecting the referendum result that saw 52 per cent vote for Brexit. – Daily Telegraph

May set to defy EU by opening pre-Brexit global trade talks

The move would directly contradict senior EU politicians, who say Britain cannot legally begin negotiations on trade deals with countries outside Europe until it has left the bloc. Despite this, officials in May’s team believe the EU will have no authority to stop the U.K. once the Brexit process has started, and little political appetite for a fight on this issue. “From a legal standpoint, there is a lot the U.K. can do in terms of scoping and negotiating new trade agreements while still in the EU,” said Shanker Singham, director of economic policy at the Legatum Institute think tank in London. “The EU obviously won’t like that. The question becomes, does the U.K. lose a lot by annoying the EU or are they sufficiently annoyed already that it doesn’t make a difference?” – Bloomberg

  • EU chiefs warn Britain not to take part in trade talks with US or face punishing sanctions as White House officials kick start future deals – The Sun
  • Britain ‘on brink of Aussie migration & trade deal’ – Daily Express
  • Donald Trump pledges much closer relationship with Britain after scrapping landmark Trans Pacific Partnership agreement – The Sun
  • Singapore would sign trade deal with Britain post-Brexit, says Singapore Prime Minister – The Straits Times
  • Theresa May plans China visit to bolster trade – FT (£)
  • Britain must look beyond the economic giants to reaffirm its place as a great trading nation – Lord Mayor of London Andrew Parmley for City A.M.

Andrew Lilico: Yes, we can legally sign a US trade deal before Brexit – no matter what the EU thinks of it

The EU is not competent over the UK’s post-Brexit trade policy, and that applies from the moment the UK leaves. There is no “gardening leave” or “no-compete” provision in the Treaties. Once we’re out, the Treaties don’t apply to us. Since the EU does not have competence over our post-Brexit trade policy, it does not have competence over negotiating post-Brexit trade deals for us, and we have no duty of sincere cooperation in respect of the EU’s post-Brexit trading arrangements… We should be able to negotiate, finalise and ratify trade post-Brexit deals as soon as we’ve formally declared we’re leaving the EU – Andrew Lilico for the Daily Telegraph (£)

EU threatens France and Italy with mammoth bill if they quit the euro

EU chiefs said countries looking to axe the unpopular single currency will have to pay back all their debts in one go before they can leave, making such a move massively unaffordable. The pronouncement comes after prominent politicians in a number of member states including Italy, France, Greece and the Netherlands have all made noises about ditching the euro… In a rare admission about the strength of feeling building up against Brussels the Italian pen-pusher Mario Draghi, president of the European Central Bank (ECB), said countries leaving the euro will face huge financial consequences. Writing a letter to two Italian MPs, he confirmed: “If a country were to leave the Eurosystem, its national central bank’s claims on or liabilities to the ECB would need to be settled in full.”… In Italy 47 per cent of voters now think the single currency is bad for their country, compared to 41 per cent who believe it has a positive effect on the economy. And in France backing for the euro fell saw a negative swing of 10 per cent in the space of a year, with 53 per cent now in favour of the EU-wide currency and 37 per cent against it. – Daily Express

  • ECB: Any country leaving eurozone must settle bill first – EurActiv
  • Brexit is opportunity to pull Europe closer together, European Parliament’s top negotiator Guy Verhofstadt says – Daily Telegraph
  • ECB’s Brexit threat: Bank could launch crackdown on London’s euro-clearing industry – Daily Express

Tim Stanley: In Britain and France, the Left faces doom: it cannot understand the age of Brexit

Labour would be in a quandary over Brexit whether it was run by Jeremy Corbyn or Liz Kendall, because the matter divides its electoral coalition. On the one hand you have working-class constituencies, such as Stoke-on-Trent Central and Copeland, both forthcoming by-elections, where opposition to the EU is shaped by fears about immigration. These people worry that their jobs and services are under threat. On the other hand, you have constituencies such as Islington North, represented by Corbyn, that contain a mix of immigrants and wealthy white voters who regard themselves as citizens of the world. Conflicting economic needs and contrasting values are what tear Labour apart. – Tim Stanley for the Daily Telegraph (£)

Brexit comment in brief

  • Both sides are drawing up battle lines for future of the City post-Brexit – Philip Aldrick for The Times (£)
  • Nil points: Why boring Dublin and provincial Frankfurt won’t steal London’s financial services crown – Karen Jones for City A.M.
  • Luxembourg doesn’t want to steal London’s finance crown – Nicolas Mackel for City A.M.
  • Europe will pay unless the Brexit deal is a fair one – Wolfgang Münchau for the FT (£)
  • A curse on Branson and his plot to hijack Brexit with his cash and his Bremoaning chums – Quentin Letts for the Daily Mail
  • It’s time to get over the mythical “Brexit Effect” on advertising spend – Elliott Haworth for City A.M.

Brexit news in brief

  • PM vows to make sure British firms come first when bidding for Government contracts – The Times (£)
  • Chief Remoaner AC Grayling says Brexit is NOT ‘the will of the people’ and suggests ‘direct action’ – Daily Express
  • Integrate or get out, Dutch PM tells immigrants – The Times (£)
  • Most German companies expect little to no impact from Brexit, according to poll – Reuters
  • Shell pays out bumper £11.1bn dividends in 2016, as UK multinationals are boosted by Brexit – The Independent
  • Threat of indyref2 ‘more damaging’ to country estate market than Brexit – Daily Telegraph
  • UK customs IT system reportedly won’t cope with post-Brexit load – Politico

And finally… Bookies give longest ever odds on Britain winning Eurovision as bitter EU countries expected to punish Britain over Brexit

Bookies are expecting, whoever represents the UK at the event, to come a dismal last as the various European countries deliver a sharp snub to the UK over its decision to leave the EU. Bookmakers William Hill are offering odds of just 3/1 that the UK entrant comes last at the event which will be held in the Ukraine in May later this year. William Hill spokesman Rupert Adams said: “Brexit will hardly have improved our chances of success at the Eurovision Song contest and we are just 3/1 to finish last.” Mr Adams added that the odds of 40/1 that the UK would actually win the event is the biggest ever opening price for a British entrant. – Daily Express