Halloween D-Day: another six months to resolve Brexit impasse

Prime Minister Theresa May’s statement on the Brexit process extention:

“I have just met with Donald Tusk, the President of the European Council, where I agreed an extension to the Brexit process to the end of October at the latest.

I continue to believe we need to leave the EU, with a deal, as soon as possible.

And vitally, the EU have agreed that the extension can be terminated when the Withdrawal Agreement has been ratified — which was my key request of my fellow leaders.

For example, this means that, if we are able to pass a deal in the first three weeks of May, we will not have to take part in European Elections and will officially leave the EU on Saturday, 1st June.

During the course of the extension, the European Council is clear that the UK will continue to hold full membership rights, as well as its obligations.

As I said in the room tonight, there is only a single tier of EU membership, with no conditionality attached beyond existing treaty obligations.

Let me conclude by saying this.

I know that there is huge frustration from many people that I had to request this extension. The UK should have left the EU by now and I sincerely regret the fact that I have not yet been able to persuade Parliament to approve a deal which would allow the UK to leave in a smooth and orderly way.

But the choices we now face are stark and the timetable is clear.

So we must now press on at pace with our efforts to reach a consensus on a deal that is in the national interest.

Tomorrow I will be making a statement to the House of Commons.

Further talks will also take place between the Government and the Opposition to seek a way forward.

I do not pretend the next few weeks will be easy or that there is a simple way to break the deadlock in Parliament.

But we have a duty as politicians to find a way to fulfil the democratic decision of the Referendum, deliver Brexit and move our country forward.

Nothing is more pressing or more vital.”

Confirmation_of_UK_Government_Agreement_to_Article_50_Extension.April

Council_Decision

Scotland’s First Minister Nicola Sturgeon has today written to the Prime Minister, following the extension of Article 50 until the end of October.  The First Minister said it is essential now that this time is used constructively and not wasted.

Ms Sturgeon has called for ongoing talks over EU exit to include the devolved administrations, and for any deal agreed by the UK Parliament to be put to a second referendum.

Full text of the letter:

Dear Theresa

I am writing to you today following the agreement reached at the European Council last night to extend the Article 50 period to the end of October 2019, with a review in June.

It is welcome that the European Union has acted in this way to give the UK more time. However, it is essential now that this time is used constructively and not wasted.

People in Scotland voted overwhelmingly to remain in the EU but have been ignored by the UK Government throughout the Brexit process. That must now change.

Notwithstanding the clear remain result in Scotland, the Scottish Government has sought to engage meaningfully on the terms of the UK’s departure from the EU and has called consistently for genuine efforts to reach consensus across party lines and with the devolved administrations. However, it is still not clear that even at this late stage and following the repeated defeat of your proposals that you are willing to drop your red lines which have restricted what can be achieved in the future relationship.

We now have the gift of more time from the EU, and that must be used constructively to re-set the UK Government approach. Your ongoing talks with the Leader of the Opposition should now broaden to include other parties, the devolved administrations, business and civic society, and open up the range of options on the table in an effort to reach a genuine consensus. If such talks are to stand any chance of success you must be prepared to recognise in particular that it is essential for Scotland, at the very least, to stay inside the Single Market and continue to benefit from freedom of movement. 

Further, and more fundamentally, the Scottish Government considers that any deal agreed by the UK Parliament should be put to another referendum, with the alternative proposition on the ballot paper being to remain in the EU. The extension to 31 October provides enough time to do this, and it is essential that no time is lost in making the necessary preparations.

I urge you to convene an urgent cross-party and cross-administration discussion to agree how to use the time we have been given.  

I am copying this letter to the First Minister of Wales, Mark Drakeford.

Theresa May: deal or no deal?

Prime Minister Theresa May issued the following statement on Brexit negotiations last night: 

Delivering Brexit has been my priority ever since I became Prime Minister and it remains so today. I want the UK to leave the EU in an orderly way as soon as possible and that means leaving in a way that does not disrupt people’s lives. Continue reading Theresa May: deal or no deal?

Prime Minister’s statement on Brexit

Prime Minister Theresa May made a statement in Downing Street on Brexit:

I have just come from chairing seven hours of Cabinet meetings focused on finding a route out of the current impasse – one that will deliver the Brexit the British people voted for, and allow us to move on and begin bringing our divided country back together.

I know there are some who are so fed up with delay and endless arguments that they would like to leave with No Deal next week.

I have always been clear that we could make a success of No Deal in the long-term.

But leaving with a deal is the best solution.

So we will need a further extension of Article 50 – one that is as short as possible and which ends when we pass a deal.

And we need to be clear what such an extension is for – to ensure we leave in a timely and orderly way.

This debate, this division, cannot drag on much longer.

It is putting Members of Parliament and everyone else under immense pressure – and it is doing damage to our politics.

Despite the best efforts of MPs, the process that the House of Commons has tried to lead has not come up with an answer.

So today I am taking action to break the logjam: I am offering to sit down with the Leader of the Opposition and to try to agree a plan – that we would both stick to – to ensure that we leave the European Union and that we do so with a deal.

Any plan would have to agree the current Withdrawal Agreement – it has already been negotiated with the 27 other members, and the EU has repeatedly said that it cannot and will not be reopened.

What we need to focus on is our Future Relationship with the EU.

The ideal outcome of this process would be to agree an approach on a Future Relationship that delivers on the result of the Referendum, that both the Leader of the Opposition and I could put to the House for approval, and which I could then take to next week’s European Council.

However, if we cannot agree on a single unified approach, then we would instead agree a number of options for the Future Relationship that we could put to the House in a series of votes to determine which course to pursue.

Crucially, the Government stands ready to abide by the decision of the House.

But to make this process work, the Opposition would need to agree to this too.

The Government would then bring forward the Withdrawal Agreement Bill. We would want to agree a timetable for this Bill to ensure it is passed before 22nd May so that the United Kingdom need not take part in European Parliamentary Elections.

This is a difficult time for everyone.

Passions are running high on all sides of the argument.

But we can and must find the compromises that will deliver what the British people voted for.

This is a decisive moment in the story of these islands.

And it requires national unity to deliver the national interest.

Funding to prepare for Brexit

Grants for Scottish businesses expanded

First Minister Nicola Sturgeon has announced £2 million is now available to help even more businesses in Scotland prepare for Brexit.

The Brexit Support Grant, administered by Scottish Enterprise, will now be available to help small and medium sized businesses manage a wide range of Brexit impacts with funding of up to £4000 each. The grant, previously only open to exporters, is now available to SME’s in Scotland for a wider variety of Brexit preparation.

The grant can be accessed by businesses employing up to 250 staff and can be used for activities including consultancy support, professional fees, external training, and international market research.

The announcement was made during a visit to Allied Vehicles in Glasgow where the First Minister met with the company and one of their suppliers, the manufacturing firm William Johnston, to discuss concerns about Brexit and how the two businesses are preparing.

The First Minister said: “Businesses like Allied Vehicles and William Johnston are critical to Scotland’s economy and it is unacceptable that they are facing this level of uncertainty so close to the UK leaving the EU.

“The Scottish Government is firmly opposed to Brexit and we continue to hope that it can be avoided, but with every passing day, the UK Government is getting closer to taking our economy off the cliff.

“Scottish Government analysis shows that all Brexit outcomes will damage our economy so it is essential businesses prepare for a range of scenarios. This funding goes hand in hand with practical support and advice and I encourage business to take advantage of this assistance.

“We will continue to work with our partners in the coming weeks and months to do what we can to minimise the impact Brexit will have on our economy and communities.”

Sandy McEwan, Managing Director at William Johnston & Company, and one of the first businesses to apply for the grant, said: “Since Brexit was announced in 2016, we have been hoping for the best but preparing for the worst.

“As a manufacturer we have found the Prepare for Brexit website a helpful tool for highlighting some of the issues Brexit may bring our business. Today, we are in the eye of the Brexit storm but, hopefully, this grant will help us to be in the best position possible to deal with the potential changes in the business environment.”

Allied Vehicles chairman Gerry Facenna said: “Exporting can be a real challenge for us, given currency differences and much higher transport costs than our continental competitors.

“Despite this, over the past couple of years we’ve started to gain significant traction selling our wheelchair accessible vehicles across Europe.

“We see huge potential to add another hundred or more jobs here in Glasgow through continued export growth – but the last thing we need is any form of trade barriers or tariffs, which would make it virtually impossible for us to compete effectively overseas.”

Steve Dunlop, CEO, Scottish Enterprise, said: “It is critical that Scottish businesses continue to assess the challenges presented by Brexit and take necessary action to safeguard their growth.

“Preparing your business for Brexit is about developing a flexible planning approach so you can adapt and be resilient across a range of potential Brexit outcomes. We are stepping up support with additional financial and people resource to make sure businesses have access to support that will help them meet challenges head on.”

Businesses can identify if they are eligible for the grant and find more information on how to prepare for Brexit on the Prepare for Brexit website.

The Brexit Support Grant, previously ‘International Project Support’, is now available to SMEs who do not export as well as exporters, and can be used for a much wider variety of Brexit preparation.

The Brexit Support Grant fund is £2 million – £500,000 in the 2018/19 financial year and £1.5 million in 2019/20.

An SME is an enterprise employing fewer than 250 persons with an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro and is independent.