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Parliament rejects May’s deal, MPs to vote on no-deal Brexit

Despite securing changes to the Northern Irish backstop for her deal, May suffered a crushing defeat in the House of Commons last night.

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Theresa May yesterday, 12 March suffered another defeat as her Brexit withdrawal agreement lost by 149 votes, 391 to 242.

The UK prime minister began the day optimistic as she hoped the last-minute changes to the Northern Irish backstop would be enough to convince MPs and to leave the European Union on 29 March with a deal in place. However, the optimism was short-lived as Attorney General Geoffrey Cox advised that the backstop changes did not go far enough to limit its permanency, boosting fears that Britain could be trapped in a customs union indefinitely.

The Pound was highly volatile, having reached $1.3285 before crashing back to $1.3012 as it became clear that May’s deal would not pass the second meaningful vote.

Brexit will continue to dominate the headlines today as MPs are set to vote yet again on whether or not to take a no-deal Brexit off the table. At the moment, a no-deal option is unlikely to gain support, which means Parliament tomorrow, 14 March will debate and vote on whether or not to extend Article 50.

Aside from Brexit, UK Chancellor of the Exchequer Philip Hammond will deliver his Spring Statement. Unfortunately for Hammond, it comes the day after May’s crushing defeat in the House of Commons. As a vocal advocate of the importance of leaving the EU with a deal, the chancellor may use his statement to try and soften the blow should the UK head towards a no-deal Brexit.

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