Sterling is given a lift as UK Prime Minister Theresa May outlines her “new” plan regarding Brexit. One key element is that her Brexit bill will include a requirement to hold a vote on whether or not to have a second referendum on the deal. That is, if MPs want a second referendum, they must vote for the bill. The prospect of a second referendum is apparently the thing that shoots the Pound higher.
Here is a summary of May’s 10-point plan:
“So our New Brexit Deal makes a ten-point offer to everyone in Parliament who wants to deliver the result of the referendum.
- The government will seek to conclude alternative arrangements to replace the backstop by December 2020, so that it never needs to be used.
- A commitment that, should the backstop come into force, the government will ensure that Great Britain will stay aligned with Northern Ireland.
- The negotiating objectives and final treaties for our future relationship with the EU will have to be approved by MPs.
- A new workers’ rights bill that guarantees workers’ rights will be no less favourable than in the EU.
- There will be no change in the level of environmental protection when we leave the EU.
- The UK will seek as close to frictionless trade in goods with the EU as possible while outside the single market and ending free movement.
- We will keep up to date with EU rules for goods and agri-food products that are relevant to checks at border protecting the thousands of jobs that depend on just-in-time supply chains.
- The government will bring forward a customs compromise for MPs to decide on to break the deadlock.
- There will be a vote for MPs on whether the deal should be subject to a referendum.
- There will be a legal duty to secure changes to the political declaration to reflect this new deal.
Al of these commitments will be guaranteed in law – so they will endure at least for this parliament.”