The second ‘meaningful’ vote yesterday resulted in Theresa May’s Brexit deal being rejected. MPs voted against by a majority of 149. This was less of a landslide than last time, but unfortunately for the PM, was large enough to send a clear message that her deal should be scrapped.
Today, MPs will vote on whether to exit the EU without a deal. They are expected to vote against a no-deal scenario. If they do, an extension to Article 50 could be on the cards. After a choppy and volatile day yesterday, this morning the pound is holding steady, helped by the prospect of an Article 50 extension.
Despite holding steady this morning, however, we can’t rule out the possibility of short term volatility for sterling. We also, at this stage, can’t completely rule out the possibility of a no-deal Brexit, which is likely to cause the pound to weaken considerably. The government is also preparing for this scenario, outlining a plan which states that most imports will be tariff free if we leave without a deal.
If MPs reject no-deal today, then there is likely to be another vote tomorrow on whether the government should ask the EU for an Article 50 extension.