May offers MPs a vote on second referendum if they vote for her deal

May 21, 2019

The Pound has made back a bit of ground after Theresa May announced further details on her “new Brexit deal”.

The vote on the deal – likely to be the in first week of June –  will be her fourth (and likely last) attempt at getting her withdrawal agreement through Parliament. In an impassioned speech, she’s given further guarantees and made further concessions to try and win over some extra votes.

There were new guarantees on workers’ rights, environmental protections, the Irish backstop, and also a bit of compromise on the customs union (a temporary one). The standout change to the bill, however, was that she’s promised MPs will get a vote on whether there should be a second referendum should they vote her deal through.  

This is clearly May’s last chance to salvage something from her tenure as Prime Minister, but, as things stand, it doesn’t appear this will be enough to swing enough votes over but we shall see how things pan out over the next 2-weeks. Her deal would have likely been voted through if she’d added a confirmatory vote onto it instead, rather than just a vote on whether to have a second referendum which is really a watered down version. Previously, this vote has failed in parliament, so it will be more a gamble for the more staunch Remainers (appealing for a second public vote) to vote for this deal.

As a result, the Pound strengthened around half a percent but remains at subdued levels (4-mth lows) as the political uncertainty and fear of a Euro-sceptic Boris Johnson taking power continues to weigh on Sterling