UK ramps up no-deal Brexit warnings; May faces battle in House
Not possible to have second Brexit vote before Britain leaves European Union: PM
LONDON: Britain’s government stepped up warnings on Wednesday that a “no-deal” Brexit would hammer the economy, but acknowledged that Prime Minister Theresa May’s plan, opposed by many of her own side, would also leave the economy worse off than staying in the EU.
Inascenarioresemblingtheagreement May has struck with other European Union leaders, national output would be 2.1 per cent smaller in just over 15 years’ time than if Britain remained in the bloc, the government said. But if there was no deal, it would be 7.7 per cent smaller.
The report was seized on by opponents of Brexit, who said it undermined promises that leaving the EU would make Britain, and Britons, more prosperous.
“It took until this morning for the chancellor (inance minister) to inally admit it: We would be better off staying in the EU,” said opposition Labour lawmaker Alison Mcgovern. “He confessed that the government’s deal would bring ‘impediments’ to trade. That means a threat to jobs.”
The forecasts assumed for the purposes of comparison that there would be no changes to migration rules, but that some non-tariff trade barriers would be introduced.
However, perceptions that immigration was too high under the EU’S freedom of movement policy were a key reason why many Britons voted in 2016 to leave the EU.
Assuming there was zero net migration from the EU in the future, the hit to the economy would be bigger: 3.9 per cent under May’s deal, and 9.3 percent without a deal.
May said it was not possible to hold a second Brexit referendum before Britain leaves the EU on March 29 next year, meaning those pressing for such a vote would delay the UK departure or increase the possibility of leaving without a deal.
“I believe, in terms of a second referendum, it is important we deliver on the vote of the British people,” she told parliament, addressing a lawmaker who asked about such a vote.
“But I would also just ask her to consider this: It wouldn’t be possible to hold a referendum before March 29 of next year. That would mean having to extend Article 50 ... delaying Brexit or leaving with no deal.”
DEEP RESISTANCE
Four months before Britain is due to leave the EU, May is struggling to overcome deep resistance within her own Conservative Party and among other parties to the agreement she sealed with EU leaders on Sunday.