Brexit Bulletin: Radical Johnsonism

Days to Brexit Deadline: 43

(Bloomberg) --

What’s Happening? The bill that paves the way for Britain to leave the European Union is back — and this time it should pass.

When he didn’t have an 80-strong majority in Parliament, Prime Minister Boris Johnson left a few clauses in his Brexit legislation that were designed to appease lawmakers from across the spectrum and win votes in Parliament.

After a resounding election victory, Johnson is no longer constrained by the forces of Remain (or even the forces of soft Brexit.) That means December’s edition of the Withdrawal Agreement Bill, the vehicle that implements the U.K.-EU Brexit deal, looks subtly different from the way it did in October.

What’s been left out? There won’t be a veto for MPs on the post-Brexit implementation period; there’ll be no parliamentary oversight of future U.K.-EU relationship negotiations; provisions for protecting workers’ right are also out.

What’s been added? Ministers will be banned from agreeing to an extension to the transition period; there will be tougher rules for a joint U.K.-EU committee tasked with overseeing the Withdrawal Agreement; a new clause has been inserted about unaccompanied children seeking asylum.

As well as Brexit, the Queen’s Speech this morning outlined a program for government that Johnson described as the “most radical” in a generation. It includes: 

• Scrapping the law that fixes the date of the next election
• Guaranteeing in law spending pledges to boost the National Health Service
• Laws aimed at supporting the U.K.’s financial sector after Brexit
• Tougher penalties, including potential jail terms, for companies and bosses who misuse pension funds
• A review into the relationships between government, Parliament and the courts
• A full review into the U.K.’s foreign and national security for the post-Brexit era. 

After a series of rhetorical flourishes in Parliament today, the prime minister can expect Parliament finally to vote in favor of a Brexit plan during Friday afternoon.

There will be more votes to come in January, but this will be a significant moment, and the 2019 intake of MPs should head off for Christmas knowing that they have already gone further on Brexit than their predecessors were ever able to do.

Today’s Must-Reads

• Fears that Britain’s break up with the European Union could still turn ugly suddenly returned to markets this week, Bloomberg’s Todd White reports.

• Jeremy Corbyn’s Labour Party stopped listening to voters or reflecting their concerns. It is paying the price, polling analyst Matt Singh writes for Bloomberg Opinion.

• Potential Labour leadership contender Sir Keir Starmer looks and sounds middle class precisely because he’s working class, Isabel Hardman writes for the Spectator.

Brexit in Brief

Powder Kept Dry | The Bank of England held interest rates, signaling it will focus on the next phase of Brexit while saying it was too early to judge whether sentiment would improve with a clearer path for the U.K.’s exit from the EU.

Security Matters| Johnson plans to overhaul the U.K.’s security laws to bring them in line with the U.S. in a crackdown on spies, saboteurs and hackers working for foreign states such as Russia, North Korea and Iran, Kitty Donaldson reports.

Headstart | In non-Brexit news, the BOE found itself under scrutiny after it emerged that an audio feed of its monthly rate decision press conferences has been made available to market participants, giving them an eight-second headstart on Governor Mark Carney’s comments. Bloomberg Opinion’s Marcus Ashworth called it “ amateur hour” at the bank.

Border Fears | Amazon.com Inc is seeking its first warehouse in Ireland to fulfill orders currently shipped from the U.K., people with knowledge of the plan said. Large retailers that ship to Irish customers from U.K. warehouses could be vulnerable if the U.K. fails to agree a deal to ensure the smooth movement of goods across the Irish Sea when it leaves the EU.

‘Right to Choose’ | Scottish First Minister Nicola Sturgeon vowed to hold a legal and internationally recognized referendum on independence after winning 48 of 59 Scottish seats in last week’s election.

It’s Just Not Brexit | Some wealthy donors to the Conservative Party quietly took steps to stay inside the European Union after Brexit, Reuters reports.

Ex-Brexit | The Department for Exiting the European Union will cease to exist after the Jan. 31 deadline for leaving the bloc, Johnson’s government said. The government confirmed the plan as HuffPost reported it also plans to drop the term “Brexit” entirely after Jan. 31, in a bid to show that Brexit is, indeed, “done.”

Want to keep up with Brexit?

You can follow us @Brexit on Twitter, and listen to Bloomberg Westminster every weekday.

To contact the editor responsible for this story: Guy Collins at guycollins@bloomberg.net

©2019 Bloomberg L.P.