UK to Ramp Up 'No-Deal' Brexit Prep 12/18 06:19
LONDON (AP) -- The British Cabinet was meeting Tuesday to discuss ramping up
preparations for Britain's departure from the European Union without a deal,
after Prime Minister Theresa May postponed Parliament's vote on her divorce
agreement until mid-January.
The discussions are expected to center on how 2 billion pounds ($2.5
billion) in government funding to absorb the potential economic chaos is to be
Communities Secretary James Brokenshire told the BBC that May's government
had been taking the prospect of no deal seriously for some time, but that it
was "right and proper" to prepare for a disorderly Brexit.
But May's Cabinet is divided between Brexiteers who think a no-deal
departure could be managed to ease the economic shock and more pro-EU lawmakers
who say no-deal Brexit must be avoided at all costs.
With Britain's departure from the bloc just over 100 days away, it remains
unclear whether the country will leave with a deal or crash out without one ---
an outcome that risks touching off gridlock at ports and shortages of goods as
well as plunging the economy into recession.
Some manufacturers have begun stockpiling parts and goods in anticipation of
post-Brexit hiccups to trade. But many businesses --- especially smaller firms
--- have done little to mitigate the economic shock of leaving without a deal.
And big firms and business organizations have warned that uncertainty is
already sapping investment and causing needless expense.
The British Chambers of Commerce said Tuesday that economic growth and
business investment in 2019 were likely to be lower than previously forecast
because of the continuing uncertainty.
Director-General Adam Marshall said "the lack of certainty over the U.K.'s
future relationship with the EU has led to many firms hitting the pause button
on their growth plans."
"With just over 100 days to go until the U.K. leaves the EU and no clear
road ahead, businesses are having to take action, delaying or pulling hiring
and investment plans and, in some cases, moving operations elsewhere in order
to maintain hard-won supply chains," he said.
The British government and the EU sealed a divorce deal last month, but May
postponed a parliamentary vote on it last week when it became clear legislators
would overwhelmingly reject it.
She tried to win changes from the EU to sweeten the deal for reluctant
lawmakers, but was rebuffed by the bloc at a summit in Brussels last week.
May's authority has also been shaken after a no-confidence vote from her own
party that saw more than a third of Conservative lawmakers vote against her.
May insisted Monday she could win "clarification" from the EU to reassure
skeptical lawmakers before Parliament votes on the deal during the week of Jan.
Opposition legislators --- and many members of May's Conservative Party ---
remain opposed to the deal. But with Parliament divided on the way forward, the
Brexit process is at an impasse.
Jeremy Corbyn, leader of the main opposition Labour Party, on Monday
submitted a motion of no-confidence in the prime minister, accusing May of
deliberately wasting time by delaying the vote, forcing Parliament to choose
between her deal and no deal.
Corbyn's move was symbolic: Losing the vote on such a motion would increase
the pressure on May, but unlike a no-confidence vote in the government as a
whole it wouldn't trigger a process that could lead to an election.
The government said it would not grant Parliament time to debate the motion,
calling it a "stunt." Other opposition parties accused Corbyn of making a
futile gesture, and called on him to push instead for a vote of no-confidence
in the government --- which would have to be put to debate and a vote under
Labour lawmaker John Healey said the party would call a full motion of
no-confidence "when it's clear to the country the government has failed
He said it was "a question of when, not if" the government would be