LONDON: UK’s opposition parties said on Tuesday they had agreed to work together to try and prevent a no-deal Brexit, including through passing legislation or holding a vote of no-confidence in the government.
Parliament returns from its summer break next week and is preparing for a battle with new Prime Minister Boris Johnson, who has vowed to take Britain out of the European Union at the end of October, with or without an exit agreement.
Labour leader Jeremy Corbyn hosted talks with the Scottish National Party, the Liberal Democrats, the Green Party and the Independent Group for Change on Tuesday to discuss tactics to prevent a no-deal exit.
“The attendees agreed on the urgency to act together to find practical ways to prevent No Deal, including the possibility of passing legislation and a vote of no-confidence,” the parties said in a joint statement after the meeting.
The news of the meeting saw the British pound rise on Tuesday with some traders encouraged enough to buy sterling even though most still fear the country is headed for a disorderly exit from the European Union.
The pound was already rising but extended its gains after the news. Sterling rose as much as 0.6% on the day to $1.2288 and 0.5% against the euro to 90.435 pence.
Investors are growing increasingly concerned that Britain is headed towards a no-deal Brexit on Oct. 31 that could disrupt trade flows and weaken the economy, though some also believe the currency has moved too far downwards.
"We are slightly positive on sterling in our portfolios as we think that a hard Brexit is already priced into the markets," said Ugo Lancioni, managing director of global fixed income and currency management at Neuberger Berman.