UK Parliament sends Theresa May back to Brussels after rejecting deal

UK prime minister Theresa May has been sent back to Brussels to re-negotiate her Brexit deal, after it was ripped up in parliament.

Brexit deal rejected Source: Bloomberg

UK prime minister Theresa May's deal has been ripped up in parliament on Tuesday, and she is set to head back to Brussels to re-negotiate her Brexit deal.

‘There is limited appetite for such a change within the EU and negotiating it will not be easy,’ May told the House of Commons.

May also said it was evident that the majority in Parliament wanted a revised agreement. She has now got the added pressure to re-negotiate a deal, as Britain is scheduled to leave the block in just eight weeks.

May wins backing for plan B

On Tuesday, May defeated a move by Labour politician Yvette Cooper to give Parliament the power to force a delay to Brexit day.

May also won the backing of members of Parliament for her plan b, which would entail re-opening talks with the European Union.

Conservative lawmaker Graham Brady’s plan to reopen the Brexit agreement was also backed by parliament on Tuesday, a welcomed win for May.

However she was defeated when the Commons backed an amendment opposing to leave the EU without a deal, signaling the possibility that Parliament would likely block a no-deal split.

After the votes, EU President Donald Tusk said that the deal, including the backstop, was “not open for renegotiation.”

However, Tusk also mentioned there was room for change to the non-binding declaration on future relations.

May is reportedly returning to Brussels to begin re-negotiating within days.

How the Pound is reacting to Parliamentary moves

The pound fell on Tuesday, after Parliament rejected extending the exit day deadline, raising the chances of a no-deal split.

While Sterling was little changed on Wednesday at $1.3078 retreating 0.7 % overnight after lawmakers rejected a proposal to prevent a hard exit.

This follows a more positive week for the pound, after it hit $1.3218, its highest since mid-October, on hopes that the UK might avoid a no-deal departure from the EU.

Trading around Brexit

Find out how the UK’s exit from the EU continues to affect traders, and discover:

  • The unique opportunities in a ‘hard’ and ‘soft’ Brexit
  • The markets you should be watching
  • Everything that’s happened so far

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