Brexit alarm bells: City optimism tanks at fastest rate since financial crisis
Britain’s biggest business group today warns that the “alarm bells have reached deafening levels” as the political crisis surrounding Brexit threatens to force the Prime Minister from office.
Read more: Brexit secretary admits indicative votes 'could be ignored'
The Confederation of British Industry (CBI) declared Brexit a “national emergency” as it revealed that financial services optimism has plunged at its fastest rate since 2008 amid ongoing political uncertainty.
The group called for a no-deal Brexit to be urgently ruled out after its latest survey showed business volumes in the sector had also fallen sharply in the first quarter of the year.
The CBI’s chief economist, Rain Newton-Smith, said: “No-deal has to be clearly ruled out, then MPs must finally compromise and deliver a solution that protects jobs, livelihoods and communities across the UK.
“It is in absolutely nobody’s interest for the uncertainty to drag on, and continually chip away at our economy and financial services sector.”
Further speculation of a Cabinet coup against Theresa May yesterday added to the mounting state of chaos in Westminster, just a day after senior Tories addressed vast crowds at a London march in support of a second referendum.
Both David Lidington, May’s de facto deputy, and Michael Gove moved yesterday to distance themselves from suggestions they were in the running to replace May as caretaker prime minister.
Amid speculation of a plot against her, the PM gathered senior Tory figures at her country retreat Chequers yesterday evening for a crunch summit on her future – and on the future of Brexit.
Despite calls for her resignation, Brexit secretary Stephen Barclay warned yesterday the risk of a general election would escalate if MPs voted for a softer Brexit or a second referendum,
Barclay admitted the series of indicative votes planned in parliament would not be binding and could be ignored by the government.
But speaking to the BBC he said the votes could lead to a "constitutional collision" in which MPs choose a Brexit option that contradicts the government's position.
Read more: KPMG downgrades economic growth forecast
However, the chancellor, Philip Hammond, appeared to soften his stance on a second referendum, describing itn as a "perfectly coherent proposition", which deserves to be considered by the Commons.
He told Sky News it was "very difficult" to see Theresa May's deal being approved by parliament at the third time of asking and that MPs would now have to choose a way forward.