CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Government survives no confidence vote amid uncertainty over the path ahead

Labour leader snubs Theresa May’s offer to discuss alternative deal following the failure of the no confidence vote in parliament.

Brexit Theresa May United Kingdom Jeremy Corbyn Motion of no confidence European Union

The British prime minister Theresa May has managed to weather the no confidence vote in her government on Wednesday evening, but the path ahead for Brexit looks unclear for the Conservative leader.

Following the vote, which May won 325 votes to 306 after her party and Democratic Unionist Party (DUP) MPs opted to support her, she invited Jeremy Corbyn and other opposition party leaders to hold urgent talks to draft a plan B Brexit deal.

‘I would like to ask the leaders of the parliamentary parties to meet with me individually, and I would like to start those meetings tonight,’ she said.

However, Corbyn snubbed the Conservative leader’s invitation to help draft an alternative EU exit strategy for the UK, telling May that she must scrap any plans for a no-deal Brexit.

Meanwhile, the Scottish National Party (SNP) leader Ian Blackford called for a second referendum to be put on the table before he would entertain May’s request of help in finding an alternative path for Brexit.

Plan B Brexit deadline looms large

It is no wonder that May is so eager to work across the aisle to thrash out a new Brexit deal, with the British prime minister having just five days before she must present an alternative plan to MPs in parliament.

Despite limited support for her original deal, the Conservative leader is adamant that she will not move on her red lines, including remaining a member of the EU customs union, which is a major point of contention for Tory Brexiteers.

Her unwillingness to budge on key aspects of her original deal makes it a challenge to create a palatable plan B that will garner the support she needs in parliament to leave the EU with a deal in place, espeically when her original Brexit deal suffered the largest defeat the House of Commons has seen since the 1920’s.

No-deal Brexit still a possibility

Despite suffering a historic defeat in parliament and opposition party leaders calling for the government to take a no-deal Brexit off the table, Downing Street said that such a scenario can not be ruled out.

‘We will leave the European Union, our preference is with a deal,’ a Downing Street spokesman said. And when asked if he is going to take a no-deal Brexit off the table spokesman said: ‘I am not.’

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.