Alison Ryan, London Office, Bord Bia – Irish Food Board
Key events this week:
The results of the local elections, which took place in England and Northern Ireland on Thursday, are showing heavy losses on both Labour and the Conservatives, with the Liberal Democrats, Green Party and others picking up the spoils. The results, which are being declared throughout Friday, are the first real indication of the cost of the Brexit uncertainty on Theresa May’s Conservatives, who were on course to lose hundreds of seats across the country. Labour has also suffered losses, in particular in northern areas of England that voted Leave. While heavy losses were predicted for the Tories, the failure of Labour to make early advances will send shockwaves through the party’s high command and put pressure on Jeremy Corbyn to intensify efforts to help Theresa May end the Brexit deadlock.
On Wednesday during a cross-examination by the House of Commons liaison committee, comprised of the most senior backbenchers in parliament, Theresa May refused to rule out staying in some form of a customs union and said she had an “open mind” on a deal to be done with Labour. However, a senior cabinet minister suggested a deal involving a customs union could be backed by as few as 90 Tory MPs and would result in a number of resignations. It is also likely to be rejected by the Liberate Democrats and the Scottish National Party.
On Wednesday, a Labour spokesman said that they had seen “clear evidence” that Mrs May is willing to move on her Brexit position. They stated that the talks between the two parties had been “serious and constructive” and expressed optimism that they could reach a conclusion. There will be more official-level and one-to-one ministerial meetings this week, with a meeting of the full delegations likely to take place next Tuesday, which Downing Street has hinted is likely to be key if a deal is to be agreed.
On Tuesday at a meeting of Labour’s ruling National Executive Committee, it was agreed that the party’s manifesto will include a pledge of support for a second referendum on Brexit, but only if the party cannot secure a general election or force the government to change its deal with the EU. There had been a push from some senior figures in the Labour party to have a referendum on any kind of Brexit. The result of the meeting allows Labour to remain strategically on the fence, and means a deal with the government is still possible.
The first Prime Minister’s Question since Easter took place in the House of Commons on Wednesday, as Mrs May was in Belfast last Wednesday, attending the funeral of journalist Lyra McKee. No questions were about Brexit or the government’s progress by MPs.
Implications for Irish food & drink companies:
As the UK has not yet agreed on the Withdrawal Agreement, as of this week the UK will be partaking in the European Parliament elections, to elect the UK’s 73 MEPs, on Thursday 23 May. If they UK does not take part in the elections, and has not agreed on the Withdrawal Agreement, it will leave the EU on 1 June. Therefore, it is crucial that Irish companies continue to prepare for all Brexit possibilities, including a no-deal Brexit.
Looking ahead:
- Theresa May said she hopes to conclude cross-party talks with Labour next week, with or without a deal. Full Conservative and Labour delegations are likely to meet next Tuesday, where talks could be concluded.
- European Parliament elections will take place on 23 May
- If the UK has not elected MEPs by 23 May, Britain will leave the EU on 1 June.
- European leaders will hold a symbolic meeting in June to review the UK’s progress.
- October 31 is the current Brexit deadline.