UK’s Labour party calls for second Brexit referendum

Labour leader Jeremy Corbyn has proposed a series of votes in Parliament that could spark a new national referendum

Corbyn proposes vote for new referendum Source: Bloomberg

The UK’s opposition party leader, Jeremy Corbyn has backed a plan that would open the door to a second European Union referendum.

Corbyn proposed a series of votes in Parliament for a no-deal Brexit, including a new national referendum.

If all goes well, Corbyn is likely to get a chance to put his plan to a vote in the House of Commons on Jan 29, joined by 10 other members of parliament who are also pushing for another plebiscite.

Corbyn said, ‘Our amendment will allow MPs to vote on options to end this Brexit deadlock and prevent the chaos of a No Deal,’

He said it was time for Labour’s alternative plan to shine, while keeping a public vote option open.

It comes after prime minister Theresa May’s deal was rejected by parliament last week resulting in May attempting to revise the agreement with the EU to win support.

On Monday, May called against a second referendum warning it would 'damage social cohesion by undermining faith in democracy', she said.

May warned a second vote would break the trust of the 17.4 million voters who backed leaving the EU.

May seeks alternative plan

May told her cabinet on Monday that she would focus on returning to Brussels to secure adjustments to her deal, saying she will meet with EU officials and try to work out changes to the controversial Irish backstop, despite Brussels remaining adamant that they will not renegotiate.

Analysts say, May could be at risk of losing control, with some MPs planning to present amendments that could force the prime minister into renegotiate her deal.

Sterling unaffected

IG market analyst Kyle Rodda says, despite the uncertainty, markets are still holding the belief that dysfunction will delay Brexit.

'Sterling maintained its recent rally and the yield on UK 10-Year Gilts stayed above the 1.3 %. Markets still hold the belief that the political dysfunction will force an extension of Article 50 and a delay of Brexit; or even another referendum, with recent polling suggesting a victory to the Bremainers.in such an event,' Mr. Rodda said.

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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