Labour backs plan to extend Article 50 deadline and delay Brexit

The Labour party is backing an amendment proposed by senior backbench MP Yvette Cooper that will delay Brexit to prevent the chaos of a no-deal.

Labour Party and Union Jack Flag Source: Bloomberg

Labour MPs are backing a plan that will delay Brexit beyond the initial March 29 deadline in a bid to prevent Britain from bailing out of the bloc without a deal that many economists expect would be chaotic for the country’s economy.

The Labour party is getting behind an amendment proposed by senior backbench MP Yvette Cooper that, if successful, will extend Article 50 and see the UK remain a member of the EU until 2019 in the hope that a new Brexit deal can be agreed.

Article 50 extension plan garners cross-party support

Cooper’s planned amendment has already secured significant support across the aisle, with senior Conservative MPs, including Nick Boles backing the motion that will stop Britain leaving the EU without a deal on March 29.

The British Prime Minister Theresa May was quick to issue her response to the plan, which she said would not rule out a no-deal scenario from happening, but merely delay Britain’s departure from the bloc.

May also warned Labour lawmakers that they should tread carefully and be mindful of the constitutional dangers of attempting to ‘usurp’ the government.

'The EU are very unlikely to agree to extend Article 50 without a credible plan for how we are going to approve a deal,' May said speaking in the House of Commons on Tuesday.

Labour leadership yet to endorse Article 50 extension plan

Despite the backbench MP garnering significant support for her plan, Labour’s leadership have been less than forthcoming in backing the amendment, with many shadow cabinet ministers worried about upsetting pro-Brexit voters in key constituencies.

But on Tuesday, Corbyn announced that delaying Brexit has become ‘inevitable’.

‘Whatever happens in the votes that follow it has now become inevitable that the government will have to extend Article 50 in any scenario,’ Corbyn said in the House of Commons on Tuesday.


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. See full non-independent research disclaimer and quarterly summary.

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
Bid
Offer
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Bid
Offer
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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 spread betting and CFDs.

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

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.