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Top stories
The good news for the government: MPs voted against the last remaining rebel Tory amendment to the EU withdrawal bill, on a “meaningful vote” that could have given parliament the power to stop Britain leaving the EU without a deal.
The less good news: it has only postponed the inevitable parliamentary clash between Tory remainers and Brexiters, with crunch votes on the customs union now scheduled for next month that many rebels see as the key battle.
The downright bad news: big business is starting to get seriously alarmed. Airbus confirmed it is considering cutting thousands of UK jobs as it starts to “press the button on crisis actions” over Brexit concerns.
The CBI warned that more and more companies were making plans based on the assumption of a no deal – and bang on cue, the bosses of BMW and Siemens in the UK said they needed clarity on future trading arrangements before the end of the summer and it looked like “realities were setting in”.
Perhaps fearful they are losing the hard Brexit battle, ministers fought back. The health secretary, Jeremy Hunt, said the Airbus statement was “completely inappropriate” and risked undermining the government at a key moment in negotiations.
Boris Johnson reportedly said “Fuck business”, before demanding (in print) a “full English Brexit” ; Liam Fox warned that Britain was ready to walk away; and David Davis insisted “lots” was being done in London to prepare for a no-deal (alarmingly, Jean-Claude Juncker said the same of the EU).
It’s all just a prelude to the decisive showdown between the prime minister and the hard Brexiteers. This is expected to come next month at Chequers, over what many now believe to be May’s secret objective: keeping Britain in the customs union and a single market for goods, with divergence on services.
And that’s before she even starts talking turkey with Brussels.
The week’s other big event, of course, was the People’s Vote march from Pall Mall to parliament to demand a referendum on the final terms. At least 100,000 people took part, which organisers said showed the mood was swinging and Brexit was not a “done deal”.
Best of the rest
- US, Canada, Japan, India firms to UK: solve Brexit or risk £100bn in trade.
- UK unveils post-Brexit EU citizen settlement scheme.
- UK urges EU to publish plans for Britons living in Europe post-Brexit.
- Brexit hardliners urge Theresa May to speed up preparations for no deal.
- Greg Clark: securing free movement for UK workers in EU is vital.
- Nine EU states sign off on joint military intervention force.
- Economic growth hit by 2.1% so far as result of Brexit vote.
- Pro-Corbyn group to launch drive for public vote on Brexit deal.
- UK-focused firms have struggled since Brexit vote, analysis finds.
- Forbidden fruit: berry growers warn Brexit could ruin sector.
Top comment
In the Guardian, Richard Partington argues that May must finally pick a side as Brexit fears for industry increase:
Economists believe that any step away from Britain’s current arrangement with the EU – even straight into another free trade agreement with one or several countries from elsewhere around the world – would lead to lower economic growth, given how integrated the UK is with the EU at present. British companies are more integrated into global business supply chains than the average for OECD nations . Most of our connectivity is with Europe. Airbus argues frictionless borders are critical. Every week of delays in delivering aircraft to its customers could result in €1bn (£879m) loss of revenue. As Theresa May heads to Brussels this week for the latest EU summit, she will have the company’s warning ringing in her ears and the voices from 100,000 anti-Brexit marchers in London over the weekend. However, at the same time, hardline Brexiters are telling her to get ready for a no-deal Brexit. Two years on from the Brexit vote she needs to pick sides as the dangers of leaving the EU become increasingly clear. Although the issues underlying the vote remain real and urgently need tackling, a hard Brexit is not the answer. Project Fear is becoming a reality.
Also in the Guardian, Aditya Chakrabortty says Airbus has delivered a body blow to Brexit Britain, and it won’t be the last:
What the Airbus story reveals is that our political classes have made themselves supplicants for foreign investment. The result is that among all the 28 members of the EU, the UK comes second only to Ireland in its reliance on foreign-direct investment ... Like Mexico, we are effectively a branch-plant economy for the rest of the world: we import components from other countries, then ship off parts to the continent or China or the US for them to be made into whole products. Trade secretary Liam Fox can jaw on about striking new trade deals, but he’ll be waiting a long time to find a buyer in Wellington or Canberra for the plane wings made in Broughton. Brexit Britain is a precarious business model coupled with throwback fantasies about buccaneering our way around the Commonwealth ... Why would a European plane-maker cut jobs in France or Germany when it needs EU support against Donald Trump and Boeing? Far easier to cut back in Britain, with its cabinet at war, its economy drifting away from the European mainland, its jar of corporate sweeties already heavily raided. In lots of other industries, lots of other companies will soon be arriving at the same conclusion.
Top tweet
Business Insider’s Adam Payne on Boris Johnson’s latest outburst:
In fairness to Boris, “fuck business” is a brilliantly succinct summary of the Conservative party’s Brexit policy.
— Adam Payne (@adampayne26) June 23, 2018
