May Hints at Customs Compromise With Labour: Brexit Update
Theresa May tells U.K. Parliament she’s still trying to get a Brexit deal approved to avoid getting stuck in a long extension.
(Bloomberg) -- Theresa May tells Parliament she’s still trying to get a Brexit deal approved to avoid getting stuck in a long extension. She also hinted that a compromise on what trade ties with the bloc should look like after Brexit might be possible in talks with the opposition Labour Party.
Key Developments:
- EU leaders agree to extend Brexit to Oct. 31
- May still aims to leave next month, if a deal can get done
- PM hints at possible compromise over a customs union
- Brexiteer MP Bill Cash calls on May to resign
- May repeats she opposes a second referendum
Change U.K. Plans to Field EU Candidates (3:35 p.m.)
The party being set up by 11 Conservative and Labour defectors will stand candidates for European Parliament in all regions of the U.K. -- if it can register on time with the Electoral Commission.
The Independent Group of Members of Parliament, who all quit their respective parties in February largely over Brexit, are in the process of setting up official party structures and plan to be called “Change U.K. - The Independent Group.” They’ve named former Tory Heidi Allen as their leader, with former Labour MP Chuka Umunna their spokesman.
“All of our candidates will be making the case for a People’s Vote,” Umunna said in a statement. “Brexit is proving to be undeliverable, we believe the people should have the final say on this matter, and the best option is for the U.K. to remain a full member of the European Union.”
May Hints at Customs Compromise (2:20 p.m.)
Theresa May just suggested there isn’t much difference between Labour and her government on their trade proposals. Her comments indicate a customs union is a possible area for compromise in cross-party talks aimed at finding a new Brexit approach.
“There is actually more agreement in relation to a customs union than it is often given credit for when different language is used,” May said. “We’ve been very clear that we want to obtain the benefits of a customs union –- no tariffs, no rules of origin checks and no quotas – while being able to operate our own independent trade policy.’’
“The Labour Party has said they want a say in trade policy,’’ she said. “The question is how we ensure that we can provide for this country to be in charge of its trade policy in the future.”
Another Tory Suggests May Should Quit (2:20 p.m.)
Brexiteer Peter Bone added his voice to suggestions May should quit, though his language wasn’t as blunt as Cash’s. Instead, he cites her remark on March 20 that she, “as prime minister” she wasn’t prepared to delay Brexit further than June. “Prime Minister, how are you going to honor that commitment you gave to the House?” he asks.
Brexit-Backer Calls on May to Quit (2:05 p.m.)
Diehard Conservative Brexiteer Bill Cash called on May to resign after asking her if she could “appreciate the anger that her abject surrender last night has generated across the country?”
He cited her pledge made more than 100 times that the U.K. would leave the EU on March 29, and railed against the Withdrawal Agreement, which he said “undermines our democracy, the constitutional status of Northern Ireland, our right to govern ourselves, control over our law as and undermines our national interests.”
“Will she resign?” he asked. May replied "I think you know the answer to that."
May had promised to quit in a desperate attempt to get her Brexit deal approved in Parliament -- offering to go if lawmakers backed her agreement. It didn’t work.
May Says She Hasn’t Offered A Referendum (2 p.m.)
Questioned by the leader of the Scottish National Party Ian Blackford whether the Conservatives and Labour have discussed a second referendum, May replied: "The government has not offered a second referendum."
She said the Withdrawal Agreement Bill would allow MPs an opportunity to put down amendments to allow for a public vote, although she doesn’t support the idea. "I believe it is important to deliver on the result of the first referendum,” she said.
May Says She Fought Back Against EU Conditions (1:50 p.m.)
Updating Parliament on the summit, May said the talks with her fellow EU leaders had been “difficult.” Her European counterparts share the “deep frustration” at the stalemate, she said.
May revealed the other leaders wanted to impose “stringent conditions” on Britain during the extension period.
“But I argued against this,” she said. “I put the case that there is only a single tier of EU membership, with no conditionality attached beyond existing treaty obligations.”
May Tells MPs to Reflect (1:50 p.m.)
Acknowledging how tired and frustrated members of Parliament are, May urged them to use the vacation which begins Friday to reflect on how to proceed with Brexit.
“I know too that this whole debate is putting members on all sides of the house under immense pressure and causing uncertainty across the country and we need to resolve this,’’ May said. “So let’s use the opportunity to reflect on the decisions that will have to be made swiftly after Easter and then let us resolve to find a way through this impasse.’’
May Says Both Sides Need to Compromise (1:40 p.m.)
May said both sides will need to compromise in cross-party talks if an agreement with the opposition Labour party is to be found. If there’s no agreement then Parliament will vote on possible Brexit alternatives.
She’s still aiming to leave the bloc before having to take part in European Parliament elections on May 23. She urged members of Parliament to reflect over the Easter break and get to work when they return to deliver Brexit.
Foster: DUP Will Continue to Support Tories (12:50 p.m.)
DUP leader Arlene Foster indicated that her deal to keep the Conservatives in power remains safe despite tensions around Brexit and the potential departure of Theresa May as party leader within months.
“Whoever the new leader is, we will work with that new leader to protect the union,” Foster, who is in Brussels to meet the EU’s chief negotiator Michel Barnier, told the BBC.
UKIP to Fight Every Seat in EU Elections (12:15 p.m.)
The pro-Brexit U.K. Independence Party, a key driving force behind the vote to leave the EU in 2016, said Thursday it will fight for every seat in the European elections. The party -- which won the most seats in the 2014 European election -- has raised 500,000 pounds ($654,000) to send leaflets to 27 million households, it said in a statement.
UKIP isn’t the force it was 5 years ago, having gone through a succession of leaders since Nigel Farage stepped down following the 2016 plebiscite. Farage eventually quit the party last year, complaining about current leader Gerard Batten’s obsession with Islam and his association with former English Defence League leader Stephen Yaxley-Lennon, known as Tommy Robinson.
Just seven of the 24 MEPs elected on the UKIP ticket in 2014 remain in the party, with eight now forming part of Farage’s new vehicle, the Brexit Party, and others becoming independents. Farage is due to speak at the launch of the Brexit Party’s European election campaign on Friday.
Ireland’s Donohoe Sees U.K. Leaving in October (11:05 a.m.)
Irish Finance Minister Paschal Donohoe said he thinks the next six months are the “real deal” for preparing for Brexit. In an interview with Ireland’s Newstalk radio, he said he believes the U.K. will exit the EU at the end of October -- a position that puts him slightly at odds with Prime Minister Leo Varadkar, who hasn’t ruled out the possibility of further delays if needed.
Cox: No Preconditions in Labour Talks (11 a.m.)
Attorney General Geoffrey Cox said government discussions with the opposition Labour Party on Brexit, which continue between officials on Thursday, are being “pursued in good faith’’ with “no preconditions.’’ A further referendum on Brexit has not been ruled out, he said.
“Of course, we will listen to any suggestions that are made, whether it be about a second referendum or any other matter to see if we can find common ground in the interests of the country to leave the European Union as swiftly as possible,’’ Cox told the House of Commons.
Conservative Brexiteers Unhappy (10:20 a.m.)
Pro-Brexit Conservative MPs have been setting out their dissatisfaction with the extension, a foretaste of the reception Theresa May will likely face in the House of Commons later.
“I don’t think it’s a good idea, and it’s not delivering on the referendum result,’’ Jacob Rees-Mogg told Sky News. “Here we are heading to Halloween and there is some symbolism in that, I think.’’ Rees-Mogg did make clear, though, that he’s not agitating for May to be replaced as party leader and prime minister, despite a recent attempt by his colleague Mark Francois to reignite a no-confidence motion in May.
Tory MP Maria Caulfield also expressed anger. “There is a ploy by those MPs who never wanted to leave the EU in the first place to kick the can down the road,’’ she told Sky, adding that the divorce deal isn’t likely to get more support. “At this stage of the negotiations, you have to be prepared to walk away.’’
Earlier:
--With assistance from Dara Doyle.
To contact the reporters on this story: Alex Morales in London at amorales2@bloomberg.net;Tim Ross in London at tross54@bloomberg.net;Kitty Donaldson in London at kdonaldson1@bloomberg.net
To contact the editors responsible for this story: Emma Ross-Thomas at erossthomas@bloomberg.net, Stuart Biggs
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