Does The Government Tax Defeat Block A No-Deal Brexit: The Vote Explained

9 January 2019, 07:55

Twenty Conservative rebels voted against the government for an amendment which was aimed at stopping a no-deal Brexit. So is that now impossible?

MPs defeated the Government by supporting a Finance Bill amendment which attempts to limit tax powers if the UK leaves the EU without a withdrawal agreement.

Does that mean there is now no chance of a no-deal? LBC's Political Editor Theo Usherwood explains.

"If Britain leaves the EU without a deal, the government will be unable to make any future changes to the tax system.

"The fear amongst Remainers like Yvette Cooper has long been that the status quo as it stands is to leave without a deal on 29th March. That, in her view, cannot be allowed to happen.

"It doesn't make it impossible. The government's spokesman yesterday was very keen to say that while it was not desirable, it was not a game changer. The government could continue to function.

"But in reality, if this were to happen and the government was to leave no no deal without parliament voting for it and they wanted to make any tweaks or changes to the tax system that affect people up and down the country, it would be unable to do so and that is exceptionally limiting."

Theresa May, who suffered another defeat in parliament
Theresa May, who suffered another defeat in parliament. Picture: PA

Theo explains why this is so important: "This is the start of guerilla warfare on the part of Remainers. Between now and 29th March, there are six pieces of legislation that relate to Brexit - from immigration to financial services.

"Conservative MP Nick Boles told the Commons he would be prepared to support any amendments which tied the government's hands to stop a no-deal Brexit."

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