Tag Archives: United Kingdom

PM May calls snap election: Pros and Cons

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Alicia Nicholls

United Kingdom (UK) Prime Minister, Theresa May, has today ‘reluctantly’ announced that Britons could be going to the polls in a general election on June 8, 2017, three years shy of the due date of May 2020.

The UK has a parliamentary system of government. Since 2011, parliamentary elections are fixed for every five years pursuant to the Fixed-Term Parliaments Act. However, early general parliamentary elections may be called before the five year period, inter alia, where two-thirds of the House of Commons (including vacant seats) vote in favour of same. In the UK parliamentary system (also known as the ‘Westminster System’) and in most British-inherited parliamentary systems like those in the Caribbean, the Prime Minister is not directly elected. In practice, though, it is the person who leads the party which wins the majority of seats in the House of Commons who becomes the Prime Minister.

The announcement of an early poll is surprising for two main reasons (1) it comes after months of denials by Mrs. May that she would be calling an early election, and (2) it also comes less than a month after the May Government made the UK’s notification under Article 50 of the Treaty on European Union (Lisbon Treaty) of its intention to withdraw from the EU.

Pros

So what are the upsides? Firstly, it is likely that in light of the disarray of the Jeremy Corbyn-led Labour Party, the Prime Minister is anticipating a stronger Conservative working majority in Parliament, reducing the likelihood of the final Brexit deal being voted against.

The Tories currently have a 17-seat working government majority in the House of Commons following the 2015 poll, which is a slim majority when one considers that there is a total of 650 seats in the House of Commons. After all, what Prime Minister would not want a more comfortable majority at home when facing difficult negotiations with the EU for the next (at least) two years? Prime Minister May said as much in her statement when she noted that “Division in Westminster will risk our ability to make a success of Brexit and it will cause damaging uncertainty and instability to the country”, and warned that “If we do not hold a general election now, [Opposition Party] political game-playing will continue.”

Polls already show a Tory sweep, but let us also remember polls had predicted a “No” win in the Brexit referendum.

Secondly, it should be recalled that Mrs. May became Prime Minister in July 2016 not through leading the party in a general election, but after then Prime Minister David Cameron resigned following his Brexit defeat.  If Mrs May leads the Conservative Party to victory in the June 8, 2017 poll, she would have:

(i) won a ‘direct mandate’ from the British people to pursue her own domestic agenda, which frees her from pursuing some of the policies promised by the then Cameron-led government.

(ii) This mandate, she would hope, would help quell the dissenting factions in her own party who disagree with her handling of Brexit thus far.

(ii) She would not be legally required to call another general election until June 2022, by which time the messiness of Brexit would be largely past (hopefully). Recall that Brexit negotiations could be extended up to 4 years, at which time the May Government would not wish to negotiating a final deal with the EU-27 while having to worry about an election at home which could be lost due to an unpopular final deal.

A third pro is likely economic. Although predictions of a British recession following the Brexit vote have not come to past, there is no telling what would happen to the British economy once the Brexit negotiations are underway. It makes more sense for Mrs. May to seek an election now than wait until things take a turn for the negative.

Cons

Firstly, on the flipside, calling a snap election after having made the Brexit notification and ahead of the negotiations with the Europeans risks adding even more uncertainty to an already uncertain political climate.

Secondly, although polls favour a Tory win, what happens if the polls are wrong and the Tories lose to an anti-Brexit Labour?  Or what if Labour and the Liberal Democrats expand their number of seats, further reducing the already slim Tory majority?

Thirdly, she risks dealing with ‘voter fatigue’.

Calling the election at this time is a risky move but one, which like all high risks, could have big rewards if the May-led Tories win and expand their mandate. In anticipation of a Tory win, markets took the news of the snap election quite enthusiastically. Sterling appreciated  against the US dollar to 1.26. However, it is also potentially a big gamble and the decision to hold the poll after triggering Article 50 is curious. It will be up to British voters to decide whether to reward or reject the gamble.

What is next?

When the House of Commons meets, they will need to deliberate and vote (as required under the Fixed-Term Parliaments Act) on whether they are in favour of an early election. A two-thirds majority will be needed. For his part, Labour leader Mr. Corbyn has supported the decision to go to the polls in his statement released on his official Facebook page following the Prime Minister’s announcement.

For Prime Minister May’s full statement, please see here.

Alicia Nicholls, B.Sc., M.Sc., LL.B., is a trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

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Brexit White Paper Released by UK Government

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Alicia Nicholls

The Theresa May Government has today released its Brexit White Paper . The official policy document, which is entitled “The United Kingdom’s Exit from and new partnership with the European Union“, was introduced into Parliament today by Brexit Secretary, David Davis.

The House of Commons yesterday voted overwhelmingly for the Brexit Bill to proceed to the second parliamentary stage – the Committee Stage where it will be subjected to increased scrutiny by Members of Parliament next week. Already, a number of amendments have been tabled for discussion. However, once the bill becomes law, the Government will have the legal authority to make the UK’s notification of withdrawal from the EU under Article 50 of the Treaty on European Union (Lisbon Treaty).

Setting out the Government’s strategy for its expected upcoming exit negotiations with the EU, the White Paper mostly elaborates on the 12 priorities which had been outlined by Mrs. May in her major Brexit address delivered at Lancaster House last month. The paper reiterated that the objective was not only to build a new partnership with Europe, but to build a “stronger, fairer, more Global Britain”.

Among the priorities identified in the Brexit Strategy are taking control of its own laws, controlling immigration, pursuing a free trade and new customs union agreement with the EU, securing rights of EU nationals in the UK and for UK nationals in the EU, securing new trade agreements with other countries, inter alia. The Plan has received mixed reviews from parliamentarians.

The full White Paper may be accessed here.

Alicia Nicholls, B.Sc., M.Sc., LL.B., is a trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

 

UK-US Trade Inquiry launched by UK Parliament’s International Trade Committee

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Alicia Nicholls

The House of Commons’ International Trade Committee is accepting submissions from interested organisations and individuals pursuant to an inquiry it has launched into UK-US trade relations. According to the official press release on the Committee’s website, the inquiry will:

  • examine the potential for a UK-US trade agreement
  • the opportunities and challenges any agreement might present
  • the implications for the production and sale of goods and services on both sides of the Atlantic
  • make recommendations to the Government on how it should approach trade relations with the US.

The Committee is inviting interested organisations or individuals to submit written evidence to the Committee via the inquiry page in accordance with the guidelines provided. The deadline for written submissions is Monday 27 February 2017.

For further information, please see the official page of the Committee.

 

Alicia Nicholls, B.Sc., M.Sc., LL.B., is a trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

 

 

Brexit Bill Clears First Parliamentary Hurdle

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Alicia Nicholls

The Theresa May government may have lost its Supreme Court Appeal last month but today the Government’s Brexit bill cleared its first parliamentary hurdle. After fourteen hours of debate spread over two days, the House of Commons voted 498 to 114 in favour of the European Union (Notification of Withdrawal) Bill, a bill to confer power on the Prime Minister to notify the UK’s intention to withdraw from the European Union under Article 50(2) of the Treaty on European Union (Lisbon Treaty).

Article 50(1) of the Treaty on European Union provides for any member state to decide to withdraw from the EU in accordance with that state’s own constitutional requirements. Last month, the UK Supreme Court, in dismissing an appeal by the UK government, held that a parliamentary vote was required in order for the Brexit process to begin. It should be noted that many of the parliamentarians who voted in favour of the Bill’s advancement had originally supported staying in the EU. However, many felt compelled to put aside personal views in order to give effect to the will of the 52% of British voters who had voted for Brexit. Mrs. May has reportedly indicated that she will publish a White Paper outlining the Government’s Brexit plans.

So what’s next?

Today’s House of Commons vote (the second reading) means that the Brexit bill is one step closer to becoming law, and will go to the next stage in the parliamentary process – the Committee Stage. During the committee stage, the Bill will be subjected to more enhanced scrutiny and it is here that any amendments may be made.

Upon leaving the Committee stage, the bill (whether or not amended) will again be debated and subjected to a final vote in the House of Commons. If the ayes have it, then it will pass to the House of Lords where the process will be repeated. The bill will be referred back to the House of Commons if the Peers make amendments to the bill.

However, once everything goes smoothly (i.e. there are no further amendments and the peers vote in favour of the bill), the Brexit bill will be sent to the Queen for the royal assent and thereupon will become law. This confers on the May Government the legal authority to make the Article 50 notification which commences the formal withdrawal negotiations with the EU. Mrs. May has indicated the end of March 2017 as her timeline for the notification. She has also promised that she will put the final withdrawal deal to a parliamentary vote.

The full text of the Brexit bill and further reporting on the UK House of Commons’ vote may be found here.

Alicia Nicholls, B.Sc., M.Sc., LL.B., is a trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.