Brexit Deal 'Dividend' Seen by Chancellor After Win: U.K. Votes




  • In World
  • 2019-12-13 12:52:03Z
  • By Bloomberg
 

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Boris Johnson's emphatic election victory puts the U.K. on course to leave the European Union next month, after pro-Brexit voters in Labour heartland areas swung behind his party.

Johnson's Conservatives are set to enjoy their biggest majority since 1987 under Margaret Thatcher. The pound rose by the most in almost three years as the scale of the Tory victory became clear.

Key Developments:

With all but one seat declared, the Conservatives had taken 364 of the 650 seats in the House of Commons, a gain of 47, to Labour's 203 seats, down 59.Jeremy Corbyn says he will step down after Labour's worst result since World War IIU.K. Plc Cheers Johnson Election Win, But Brexit Still LoomsPound Surges and Gilts Drop as Tory Landslide Jolts U.K. AssetsJohnson Wins Crushing Majority in Election That Upends Britain

Here's the latest (all times local):

Chancellor says business welcomes Conservative win (12.49 a.m.)

Chancellor of the Exchequer Sajid Javid said there will be a "deal dividend" as a result of the election outcome and Johnson passing his Brexit withdrawal agreement.

"Because of the election result, there are investors who have decided to deploy money in the United Kingdom," Javid said on Sky News. "Business after business wants an end to the uncertainty." Pressed on whether there was still a threat of no-deal at the end of 2020, Javid said: "No-one needs to worry about no-deal, because we now have a solid majority."

Sturgeon Says independence a matter for Scotland alone (12:15 p.m.)

Scottish National Party leader Nicola Sturgeon said Scotland's semi-autonomous government will publish the "democratic case for a transfer of power" from Westminster "to enable a referendum to be put beyond legal challenge."

Under current law, Westminster must vote to allow Scotland a further independence referendum, a move Johnson has ruled out. Sturgeon argued the SNP election result gives her the mandate to put that decision to Scotland without Westminster approval, saying she'll set out her "detailed" case next week. "I have been clear that a referendum must be the responsibility of the Scottish Parliament," she told supporters. "This is not about asking Boris Johnson or any other Westminster politician for permission. It is an assertion of the democratic right of the people of Scotland to determine their own future."

Johnson Returns to Downing Street (11.42 a.m.)

Almost an hour after he arrived at Buckingham Palace, Johnson returned to Downing Street, walking briskly up to the front door. Why was he with the Queen for so long? She may have had a lot of questions for him, but equally he could have been held up by the Changing of the Guard at the palace, which prevented him from leaving.

Cameron offers his praise (11.31 a.m.)

Former Prime Minister David Cameron, a long-time rival of Johnson who resigned after losing the Brexit referendum in 2016, offered "big congratulations" on the victory.

"It's an extraordinary result, a powerful result. It marks the end of Corbyn and Corbynism and that's a very good thing for the country," Cameron said in a pooled TV clip. "It gives us a very strong and decisive government, and the opportunity to build the dynamic economy and good public services we need."

What happens to Brexit now? (11.12 a.m.)

MPs return to Parliament on Dec. 17, followed by a Queen's Speech laying out the government's program two days later. Johnson will then look to introduce the Withdrawal Agreement Bill before Christmas, with the aim of passing it in good time before the Brexit deadline of Jan. 31.

The 11-month transition period will start from the end of January, during which time Johnson will get down to thrashing out a trade deal with the EU. He'll first need Parliament to sign off his negotiating objectives, and the EU will also need to get approval for its mandate.

If Johnson sticks to his campaign promise to not extend the transition period, the U.K. and the EU will have a tight time line to hammer out an accord. If the talks fail, the U.K. will leave the EU without a trade agreement at the end of 2020.

Johnson sees the Queen (10.51 a.m.)

The prime minister is leaving Number 10 Downing Street in a grey Jaguar to go to Buckingham Palace, where Queen Elizabeth II will ask him to form a government. Recall that he made a similar visit just five months ago when he replaced Theresa May as Conservative Party leader. This time he's heading back with his own mandate to run the country, finally able to move from campaign mode to governing.

Corbyn may stay for a while (10.18 a.m)

Corbyn may remain as leader until April because Labour Party rules dictate a minimum 12-week leadership election. The timetable must be set by the National Executive Committee which isn't meeting until January.

Electoral questions (10:02 a.m.)

The Conservatives and the Brexit Party combined got 47% of votes, less than the 52% of support for parties in favor of a second referendum, polling guru John Curtice told the BBC.

The result is likely to prompt more debate about the U.K.'s first-past-the-post electoral system, as victory didn't come for those with the most popular idea but rather those with the better organized campaign, said Curtice, who ran the team of psephologists that delivered the exit poll last night.

Future Europe ties (9:57 a.m.)

Irish Prime Minister Leo Varadkar said the decisive result means the EU and U.K. can move forward on completing the Brexit withdrawal agreement.

Varadkar told reporters in Brussels before a meeting with fellow EU leaders that the next steps will be to develop a future economic partnership with the U.K., "one that's going to be mighty and one that's going to be good for all of us."

Earlier:Johnson's Victory Gives Him a Free Hand to Get Brexit DoneBrexit Rewrites U.K.'s Political Map: Balance of Power SpecialCorbyn to Stand Down as U.K. Labour Party Faces Record Defeat

--With assistance from Richard Bravo and Tim Ross.

To contact the reporters on this story: Kitty Donaldson in London at kdonaldson1@bloomberg.net;Jessica Shankleman in London at jshankleman@bloomberg.net;Joe Mayes in London at jmayes9@bloomberg.net

To contact the editors responsible for this story: Rosalind Mathieson at rmathieson3@bloomberg.net, Alan Crawford

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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