Tag Archives: brexit

Jo Swinson says cross-party talks were “very positive”

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The Guardian reports:

Lib Dem leader Jo Swinson has told the BBC’s World at One programme that the meeting in Jeremy Corbyn’s office with other leaders trying to stop no-deal Brexit was “very positive”. Swinson confirmed that the leaders did not discuss who would lead a caretaker government if the prime minister lost a vote of no confidence
She told the show:

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Surely there is a way that Johnson can give us a treat on Halloween, rather than a trick?

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WARNING: This article contains high amounts of hysterical optimism (or at least non-pessimism)

Here are, to my mind, three significant things about Boris Johnson in the context of the current Brexit dilemma:

1. It is conceivable that he harbours ideas of having statues of himself built in future. When grappling with the choice of being a politician or a journalist, he allegedly once said:

They don’t put up statues to journalists

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Closing Parliament to force no deal would be an outrage

You may have seen reports that Boris Johnson is considering closing Parliament for six weeks in order to block MPs from extending Article 50 for a further period.

Our Shadow Brexit Secretary Tom Brake remarked on this yesterday:

If Boris Johnson can find a kooky or irregular way to shut Parliament out of the Brexit process it will be an outrage.

No deal will destroy our economy, it will have a dramatic impact on the cost of living and it will mean less access to medicines that keep people alive. Parliament must be able to challenge Ministers on the damage it will cause.

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It must be Revoke – it’s too late for anything else….

When Jo Swinson meets Jeremy Corbyn next week there is only one message worth delivering: Article 50 must be revoked before the Brexit deadline. The time is long past for parliamentary jiggery-pokery and procedural sleight of hand, whether it be to bring about a further extension, a second referendum, a General Election, or all three. The country now needs a solution which is honourable, and removes the tyranny of an artificial deadline created only by the ineptitude of the May administration.

The overriding justification for revocation is that it is the only course of action which is neutral in its consequences. Legally we can revoke without any change in our relationship with the EU, and legally there is nothing to stop us restarting the Article 50 process in the future.

Its beauty is that it is blissfully simple, it requires no commitment to a leave or remain agenda, and if it is understood to be temporary, no one is bound or compromised. To be fair to the Leave factions, the Labour Party and others, it is likely to require a commitment by Parliament to a further referendum, and maybe also a General Election, but this would be for later, and with time to do it properly.

Of course, there will be the familiar outcry claiming betrayal of democracy, but such claims are tendentious and above all hypocritical. The leavers will have lost nothing, except the chance to squeeze through a flawed and massively unpopular decision by undemocratic means. There can be no honourable objection to restarting the process. Let the Leavers state their case again and demonstrate that they really do represent the will of the people.

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Brexit: Do we follow Jeremy Corbyn or revert to Theresa May’s plan?

With regard to Brexit, two options remain for the Liberal Democrats. They are unpalatable. Our very newfound strength represents unconverted electoral energy. We must not overplay our hand.

There is no legitimate option to Remain without attempting reform. We cannot just hope that the far-right does not swell and that our fulsome democracy is not irreparably damaged and left as an empty shell of majoritarian rule. The likes of Stephen Yaxley-Lennon, Nigel Farage and Boris Johnson know how to pipe the tune to destruction.

These are not hollow (Project) fears. We must guard against them as vigilantly as we try to prevent No Deal.

Our options:

Jeremy Corbyn. He offers us a government of national unity to stop No Deal. Then a General Election that we’ve been chomping at the bit to fight. Then – he assumes he’ll win, but we’ll see about that! – a referendum. For this we must accept Jeremy Corbyn as a neutered Prime Minister for a little while. And – I know my fellow Scottish LDs won’t want to hear it – IndyRef2 for the SNP’s support.

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Jo Swinson and the art of disagreeing well

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When I was at London University in the latter 1980’s studying History and Politics, a particular incident made an impact on me and I recall it clearly.

I was in a politics tutorial, one in which the very mild mannered, but enthusiastic, tutor, a delightful German of young middle age, had got the class to be a sort of forum for topical discussion. “What shall we discuss today, then?” He said, one day, as often he did. He was greeted by silence, as often he was!

“Any suggestions?” He said, again trying to enthuse. He was greeted by silence, again nobody very enthused. I was very enthusiastic, but said nothing, because I rarely did say anything, and was very political, elected during those university years as a President of the Student Union, and I did not want to be pushy or too showy.

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LibDem council chief: Government ‘must not crucify Portsmouth’ over Brexit

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The BBC reports:

The leader of Portsmouth City Council says he can not allow government inaction to “crucify Portsmouth” in the event of a no-deal Brexit.

Gerald Vernon-Jackson said the authority and Hampshire County Council had already spent £4m on preparations to avoid gridlock near the city’s port.

The government has just announced port towns in England will receive an extra £9m to pay for preparations.

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Vince Cable MP reflects on recent events and some holiday reading


Jane Dodds applauds helpers at Brecon – Photo by Callum Littlemore

I heard the good news about Brecon and Radnorshire having disappeared for some R&R as soon as Parliament closed, and the new Lib Dem leadership was settled. I was delighted with the result not just for Jane Dodds and our campaigners – who fully deserved it – but for an excellent colleague, Roger Williams, who didn’t deserve to lose back in 2015. Our victory is testament also to Kirsty Williams, our AM, who kept the Lib Dem flame, and local party, alive through the years of exile.

I enjoyed my three visits to the constituency as party leader for more than the politics. I had memories of a mis-spent and romantic youth as a mountain guide in the Black Mountains and Brecon Beacons; an idyllic second honeymoon in a hotel below Pen-y-Fan; and several literary fests at Hay. Jane helped Rachel and me to locate a stunning B&B in ‘the oldest house in Wales’, a farmhouse and restored annex reached through three farm gates high up a hillside on the banks of the Wye and serving food which would not have been out of place in a top restaurant. A great by-election in more ways than one.

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What the Yellowhammer assessment reveals

The Sunday Times on August 18th led with this “leaked” Cabinet document, purportedly by a former Cabinet official and then downplayed by Mr Gove and others as a “worst case” scenario or a re-hash of “project fear”.

Even if the “revelations” are slightly dated (although it is said to have been an updated version) the base-case cannot have changed materially since March 2019 and if anything could arguably have worsened given the macro-fiscal setting the UK faces.

The National Audit Office produced a dry overview of Operation Yellowhammer in March 2019 which was setup under the aegis of the Civil Contingencies Secretariat (CCS) at the Cabinet Office. The CCS works alongside the Department of Exiting the EU (DExEU) to prepare for the UK’s exit from the EU across 12 areas.

The institutional mapping and framework to prepare for the operation is impressive and speaks volumes for the hard graft undertaken by our Civil Service and which would potentially involve over 30 central government bodies including all government departments or ministries, 42 local forums in England and Wales and equivalent bodies in Scotland and Northern Ireland, governments in Scotland, Wales and Northern Ireland as well as key sectors and industries.

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Martin Horwood MEP writes… Gibraltar, Trump and Iran: the Brexit connection


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Gibraltar has just controversially released the Iranian oil tanker formerly known as the Grace 1 with a new name and a written assurance from Tehran that its shipment won’t be used to break EU sanctions on Syria.

As a member of the European Parliament’s Iran delegation and one of the LibDem MEPs for Gibraltar, as well as the South West of England, I have warmly welcomed this move. And I’m pleased to be in a position to strengthen our co-operation and influence with Europe on this critical issue. Its no exaggeration to say that peace in the Persian Gulf hangs in the balance. While the Conservative government flirts with Donald Trump, we’re working with our European allies to de-escalate crises like this.

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We need to show that we are not a one-trick Brexit pony

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As a new member (I joined in June) Brexit, or rather stopping Brexit, was one of the reasons I joined. Yet this wasn’t the sole reason. Likewise my new colleagues have no doubt been pushed ‘over the line’ by our strong Anti-Brexit stance.

Yet, what happens post Brexit?

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The most important thing Jo Swinson did this week

When Jo Swinson was asked on the Today programme if she had talked to Ken Clarke and Harriet Harman about the possibility of them leading a Government of National Unity, my first thought was “Do you know nothing about her?”

Jo does her homework. There is no way on earth she would have said that Corbyn didn’t have the support to become temporary PM if she wasn’t sure of the figures. When she said that Corbyn couldn’t command the support of the House of Commons it is because she had had the conversations and worked that out. When she said that people like Ken Clarke and Harriet Harman would be great choices to lead a Government of National Unity as they didn’t have any long term ambitions to do the job, of course she had spoken to them first.

Her constant refrain was about building a plan that worked, a plan that united those opposed to the destructive path our incompetent Prime Minister is trying to take us down.

And that’s important.

For two days, Jo dominated the news headlines. Actually, it was nearer three as the news that Sarah Wollaston had joined us came late on Wednesday.

Dominating the news headlines is news about the formation of a coherent plan to block no deal – and, if Jo has her way, to stop Brexit altogether. She was crystal clear that the aim of the Liberal Democrats is to remain in the EU and we would campaign to do so in any People’s Vote.

She looked an anxious nation in the eye and calmly and confidently told them that she, and others, potentially a majority of MPs, had their backs.

She talked about doing whatever it took to stop Brexit.

This all comes as the Sunday Times publishes details (£) of leaked government documents showing how a no deal Brexit would lead to the return of a hard border in Ireland, food, fuel and medicine shortages and massive queues at ports. It doesn’t need explaining how this will hit the poorest and most vulnerable the hardest.

Here’s what they have to say on medicines:

Any disruption that reduces, delays or stops the supply of medicines for UK veterinary use would reduce our ability to prevent and control disease outbreaks, with potential harm to animal health and welfare, the environment and wider food safety and availability, as well as, in the case of zoonotic diseases, posing a risk to human health. Industry stockpiling will not be able to match the 4-12 weeks’ stockpiling that took place in March 2019. Air freight capacity and the special import scheme are not a financially viable way to mitigate risks associated with veterinary medicine availability issues.

And on food:

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Lord Tony Greaves writes…So how would an interim government actually work?

For a start, here is my letter to the Guardian which they did not publish.

It is surely obvious that the best person to head up an interim multi-party government is an interim Prime Minister – a person with no longer term ambitions who is not going to try to use their interim position for their own advancement or that of their party? It should be a person who commands respect around the House of Commons and who is not standing again at the next General Election.

As for Mr Corbyn, can he be trusted on Europe? We all know that he and his closest advisers would like to leave the EU, that he has talked for the past three years about the need to get a “Labour Withdrawal Agreement”, and that he has been dragged kicking and screaming by members of his party to support any new people’s vote. In the highly unlikely event that he could win an overall majority in the General Election that he wants to call before any new referendum, are we confident that he would not abandon any such idea? Jo Swinson is right – he is not the person for the job.

But now we need to take the discussion further. In all the Westminster Bubble blather about who should be the Interim Prime Minister in an Interim Government, no-one seems to be thinking about how it would work. Of course it suits the Bubble to talk about personalities, who is falling out with who within and across the parties. And it means they don’t have to think and expose their ignorance about what the rules say and how the systems actually work.

Jo’s speech and letter were an excellent explanation of where the Remain forces (which at any given moment may or may not include Labour) stand in the short run. Experts in what the Commons might or might not be able to do in their fortnight back in September to stop a hard Brexit on 31st October are working hard on that. There is still over a fortnight before Parliament returns on 3rd September for the politics of it all to evolve, though to read and hear a lot of the current blather you’d think it all had to be done this weekend.

Paul Tyler’s excellent piece here sets out a good explanation of how the present government can be brought down, and what has to happen before a General Election would have to be called. There is still far too much loose talk in the media about the Prime Minister or even Mr Corbyn just “calling a General Election”. But if it does all result in the Queen inviting someone else to try to form an Interim or Caretaker Government, there seems to be no talk at all as yet about what such a Government would look like (other than who might be PM), how it would be constructed, how long it would last and what it would do.

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Corbyn’s offer: divisive by design?

Corbyn’s offer on Wednesday to opposition leaders was a new twist in the tragi-farce of Brexit. In brief, the offer goes as follows:

  1. He will table a vote of no-confidence in the Government.
  2. If that is successful, he would seek the confidence of the house to form a “strictly time-limited temporary Government”.
  3. If that is successful, he would aim to secure an extension to Article 50 to hold a General Election.
  4. He would then bring a vote to hold a General Election.
  5. In that General Election, Labour would commit to holding a public vote on the terms of exit, and it would include an option to Remain.

On social media, Labour supporters claim that if Lib Dems don’t support this it is a betrayal of our desire to stop Brexit (especially no-deal Brexit). To see a similar view in more words, the Guardian is reporting that the Lib Dems are now ‘isolated’ since other opposition leaders (Sturgeon, Lucas, Saville-Roberts) are receptive to the plan, and this is supported by an opinion piece.

Commentary has focused on whether Corbyn can command the confidence of the house. Swinson has challenged Corbyn to list the eight Conservative MPs whose support he can count on to get over the line (I make it nine with twelve independents so please correct me in the comments). Eight Conservatives seems like a stretch – I can’t even find eight current Conservatives who have backed a second referendum, let alone one brought about by Corbyn. Labour supporters think that being the leader of the Opposition gives Corbyn the right to head a unity government, whilst as Lib Dems we probably think that Corbyn and unity are unlikely concepts to find together and someone else would be better placed. 

The plan really falls apart at the General Election stage: I would argue the chances of returning a parliament which supports a people’s vote are very low. This is largely subjective, and therefore divisive: Labour supporters have been told for years that the only thing standing between Jeremy Corbyn and Downing Street is a General Election which they are bound to win (after all, he “won” the 2017 election didn’t he?). My assessment would be: 

  • The non-Conservative parties would be divided against a united Conservative party.
  • The “Leave” message from the conservatives would be much clearer than the “vote for us to have another vote on maybe not leaving or maybe leaving with some deal not sure what though” message from Labour.
  • It plays to Johnson’s strengths as a campaigner and personality
  • Labour would struggle to replicate their 2017 success, which was built on non-Brexit issues, without jeopardising the anti-no-deal-Brexit alliance who don’t agree with Labour on everything else. 

And even if a majority for a people’s vote is elected, it’s not clear if Corbyn wants a shot at renegotiating the withdrawal agreement, how he would campaign in the referendum, and even what would be in it (would it be deal vs remain, or no-deal vs deal vs remain). Then there’s the small matter of winning the referendum! Even just writing it all down is exhausting. Perhaps by this point, the “remain” option in the referendum campaign should be marketed as “make it all stop please”. 

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Paul Tyler writes….Clearing out constitutional confusions?

The current combination of Brexit bluster from No 10 and Corbynista claims seem to have confused even the shrewder media commentators: the rest are swallowing spin from both sides without any attempt at fact checking.

The idea that the Leader of the Official Opposition has a constitutional right to form an alternative government as soon as the current Prime Minister is defeated by a Vote of Confidence is wishful thinking by the Corbyn coterie. Similarly, the notion that Johnson can simply trigger a General Election in such circumstances is against the law.

Let me take you back to the Fixed Term Parliaments Act (which I argued for even before the 2010 election resulted in the failure of either of their parties to achieve a Commons majority). There was no logic to the previous convention. Nor could it be claimed to be fair. The captain of one political team could simply blow the final whistle whenever he/she judged that they had the best chance of winning.

In a parliamentary democracy we Liberal Democrats argued – successfully – that was a totally unacceptable anomaly, more suited to an “elective dictatorship”, as described by erstwhile Tory Chancellor Lord Hailsham. Hence the 2011 Act, promoted by the Coalition Government.

Under the Act each Parliament will normally continue for a full five year period. An “Early Parliamentary General Election” can only happen in one of two circumstances. EITHER the Commons votes by a 2/3 majority (including vacant seats) for a specific motion calling for it (as happened in 2017), OR a Motion of No Confidence is passed against the current Government, and – after a 14 day interval – neither it, nor any alternative administration, has secured a Confidence Motion.

During that period the current PM cannot trigger an election: clause 3(2) reads “Parliament cannot otherwise be dissolved”. In that respect at least Dominic Cumming’s threats are absurd

However, as you will readily observe, it is one thing to prevent crash out Brexiteers from cutting MPs out of this particular nefarious sharp practice, but quite another to so manage the process to achieve a more democratic outcome.

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A no deal Brexit is irreversible, a Jeremy Corbyn government is not

As someone who has spent a considerable amount of time in Latin America, I am extremely worried about the prospect of a Jeremy Corbyn lead Labour government in the long term. From the corruption, poverty and rising crime, in Argentina under the previous hard left government, to the decay in Venezuela where people are having to buy rotten meet in the markets to survive and where medicines have run out in many hospitals, it is clear that what damage a hard left government can do.

I am also angry about what has become of our country in the five years since I came back to the UK. I have suffered myself from the consequences of austerity when I had to pay £4,000 for mental health treatment in 2014. Millions of others would not have been able to dig into savings to do this.

Like many parents I now have to pay money to my children’s school to keep it afloat financially. My local Council, Richmond, has seen its central government grant slashed and is desperately under-funded when it comes to special needs education. Children’s services are at crisis point and adult social care still has a gaping black hole in its finances. On a personal level, I have seen the damage that Brexit is doing to people’s lives. Friends have had to relocate abroad because of Brexit. Someone I know was beaten up by yobs in 2016 and told to “eff off” back to France – he could not work for two weeks. With Boris Johnson once again using war like language about pro-Remain MPs yesterday, I am truly ashamed of the image our country has when I travel around the world on business.

There is so much to do to make life better for millions of people. However as of today, the most important priority for our country has to be stopping a no-deal Brexit. Like it or not, the only person with the democratic mandate to take over a caretaker government is Jeremy Corbyn.

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Stopping a crash out Brexit

It should be obvious now that the current government, effectively headed jointly by Boris Johnson and Dominic Cummings, is prepared to break almost any constitutional convention to ensure that Brexit occurs by 31 October 2019.   This is even though such a Brexit will almost inevitably be a crash out Brexit without a deal with the EU, an outcome which Michael Gove dismissed during the Leave campaign, saying that it was as likely as Jean-Claude Juncker joining UKIP.

This is a sea-change from the May government which, for all its faults, never tried to defy the will of parliament or take us out of the EU by stealth.  As a result, the Cooper-Letwin Bill requiring the government to seek an extension from the EU was implemented without question and without trying to exploit the loopholes which it contained.  This will not be the case this time around and, as a result, there is a strong likelihood that the government would find ways to defy the will of Parliament expressed in similar legislation.

Furthermore, a simple Vote of No Confidence won’t work because it is likely that the government would postpone the General Election until after 31 October 2019 and ride roughshod over the convention that a government which has been no confidenced should do nothing controversial.  Nonetheless, Parliament does have the ability to stop them by a passing a Vote of No Confidence plus installing a caretaker government to request an extension from the EU.

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Caroline Lucas’s all female Cabinet is not the right approach to stop Brexit

I have a lot of respect for Caroline Lucas – I think she has generally been brilliant and a voice of reason on Brexit. Her willingness, like Jo Swinson, to work proactively and co-operatively across party lines on the crisis facing our nation is very welcome and laudable.

However, I was dismayed to hear Lucas proposing an all-female emergency cabinet to stop Brexit. At a time when families, communities and the nation are so bitterly divided over the most important and pressing issue of the day, do we really want to manufacture yet more division along gender lines? I’m going to be charitable and put it down to a PR stunt – if that is the case, then let’s face it, she has succeeded.

There is a lot of evidence that diverse leadership teams and a diverse workforce lead to better decision making and more successful organisations – that’s why we see so many companies focusing and investing heavily in actually walkingthe walk on diversity and inclusion, not just talking the talk. Diversity means just that – a team that includes BOTHgenders and people from a variety of different backgrounds with a range of experience. I would be just as concerned by an all-female (and all white to boot) cabinet as I would an all-male cabinet.

How could an emergency national unity cabinet to tackle Brexit seriously omit the likes of Hilary Benn, Dominic Grieve, Vince Cable, Keir Starmer or Ken Clarke?  What about Rory Stewart? All men who command great respect across the political spectrum whose contribution to such a team would be immense (granted, they don’t help address the lack of BAME individuals).

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Jo Swinson visits Irish Border

Back in 2017, LDV held a fringe meeting at the Bournemouth Conference where we talked about the areas that could be most harmed by Brexit – the Irish Border and Gibraltar. We heard that the manufacturing process for some products could involve crossing that border five times. You can just imagine the chaos Brexit brings to that process.

Today, Jo Swinson, who has barely had a break since being elected leader 3 weeks ago, headed to the Irish Border to hear from the people who would be amongst the worst affected by any Brexit.

She went one better than Boris Johnson who has never bothered himself to actually go and find out what havoc he is so cavalier about wreaking. Here is the interview she gave to BBC News.

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Brexit is unpatriotic and shameful

The other day I got talking to two Leavers on the train. They were a married couple well past retirement age. They told me that they belonged to a small group that celebrated St George’s Day and Trafalgar Day, and said that they would be doing this “as long as we are allowed to”. What I took away from that slightly paranoid remark was that they felt their identity was under threat from unpatriotic liberals. They were lovely people who had worked hard all their lives, and whom I instinctively respected.  As we parted, I told them my father fought against Hitler and the experience made him a lifelong pro-European.  I hope this gave them food for thought.

After thinking about this encounter, I decided to beat the patriotic drum on LDV.  And yes – why don’t we have a Lib Dem fundraising event on Trafalgar Day (21 October),  or Waterloo Day (18 June)?

For hundreds of years, Britain has taken the lead in standing up to tyrants in pursuit of world domination. Trafalgar may have been a specifically British victory, but Waterloo and Blenheim were not. At Blenheim, Marlborough commanded Austrians and Dutch as well as British, while Wellington’s army included Dutch, Belgians and Germans. But for the arrival at Waterloo of another German army under Bluecher, Napoleon would probably have carried the day. Moreover, even if Trafalgar was a battle we won by ourselves, it was part of a lengthy conflict we could not have won alone.

We could never have been victorious in World War One against the domineering Kaiser without our French allies, who suffered far more than we did. Even when we stood alone in World War Two, many Europeans from the continent fought beside us. Think of the heroic Polish pilots in the Battle of Britain and the ferocious resistance of the Free French at Bir Hakim – but for which Rommel might have ended up reaching Cairo while Germany simultaneously took Malta. And those are just two examples.

So yes, we should be proud of our heritage but acknowledge that Britain can never win alone – and never has done. Where does that leave us today? By turning our backs on our European partners and kicking them in the teeth we are behaving in a very un-British and unpatriotic  way. We are kow-towing to Trump and haven’t even left the EU! It is in continuing the legacy of Marlborough and Wellington that this country’s future should lie. We are more effective standing up to Putin, Iranian mullahs, Bashar al-Assad in Syria and other tyrannical forces all over the world if we can do it jointly with our European partners (Think of the Iran nuclear deal that Trump has sabotaged). 

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Time to ditch the People’s Vote organisation – but not a People’s Vote

Many Liberal Democrat candidates at the next election are going to be surprised  to  find that the People’s Vote campaign will be recommending voting for their Labour opponents – and sending activists to back  that on the ground. 

Liberal Democrats have generally been very supportive of the campaign  which is supporting  our core policy on Brexit and have been happy to promulgate its messages , help at its events and donate money to it. All of that has helped give it credibility – but that credibility may now be used against us. 

According to leaked documents in the Guardian and  the Sunday Times (£) the People’s Vote Campaign are going to be recommending that Lib Dem and Green voters in some constituencies  vote Labour. According to the  leaked document, James McGrory, Director of the People’s Vote organisation says (my emboldening):

In some cases we will be asking Labour supporters to vote for other parties such as the Liberal Democrats. In many others we will be asking supporters of the Liberal Democrats, the Greens or others to vote Labour.

We can expect Labour candidates who are endorsed by the People’s Vote campaign to be using this endorsement to squeeze our vote. 

This is madness – Labour is a pro Brexit party and Corbyn has made  it clear time and again that  what he wants is a Labour Brexit

Anyone elected as a Labour MP will be voting to put life long Brexit supporter Jeremy Corbyn in charge of the negotiations. 

The People’s Vote campaign have a track record on this – they pressured Femi Oluwole to drop out of the Peterborough by election for fear it would  harm the Labour vote.

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3-4 August 2019 – the weekend’s press releases

Police should reduce fear, not create terror

Liberal Democrat Home Affairs Spokesperson Ed Davey has criticised Home Secretary Priti Patel as “out of touch” for her comments about the police making people “literally feel terror”.

Responding to Priti Patel’s interview with the Daily Mail, Ed Davey said:

The Liberal Democrats want many more police so they can catch criminals, prevent crime in the first place and work in our communities to help people feel safer – and it’s a shame Priti Patel didn’t back our campaign for more police these last four years.

Yet Priti Patel’s notion that making people terrified of the

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Listen to St Alban’s candidate Daisy Cooper: People are voting Lib Dem because of our values

St Albans’ Lib Dem candidate Daisy Cooper was on The World at One yesterday talking about how people’s voting patterns are shifting and people are turning to the Lib Dems because of our values.

St Albans voted heavily to remain in the European election and they have a Leave supporting  Conservative MP who’s quite happy with no deal.

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Sunny Uplands and Baloney Economics: whence the falling Pound?

The pound has hit a 2-year low and is the worst performing currency this year and there are still strong headwinds ahead for sterling, particularly if a No Deal Brexit ensues.

The circumstances facing the UK economy and the exchange rate remind me more about country risk scenarios that I faced for dodgy Emerging or Transition Economies, not a developed and mature economy such as the UK. 

All bar our more mature colleagues will have no memory of the dark days of the IMF led bailout of the UK in the 1960s. It’s worth therefore sketching out what the economic-cum-financial risks lie ahead if the “Sunny Uplands” scenario of Prime Minister Johnson starts to take shape, based on his statements and promises since his speech at the doors of 10 Downing Street.

The pound’s value in terms of other currencies is based several factors. Right now, the increasing risk of a “no deal” is scaring away demand for sterling and for sterling assets, thus pushing down the price or exchange rate in terms of other currencies – but the markets sense that there’ll still be a resolution or a further extension.

However, in the event of a “no deal” we will face a genuine currency crisis as investors pile out of sterling assets. These events tend to lead to an initial “overshooting” of the depreciation and we could easily see a further drop of 10, 15 or 20% – nobody really knows. With liberalised exchange rates there’s nothing to really hold back the initial loss of the pound’s value.

Ignoring the immediate hit for UK holiday makers facing a steep rise in the cost of holiday spending, what are the likely consequences for a no Deal as far as the pound is concerned?

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“Is he all talk and no trousers?” Jo’s first question to PM Boris

Jo Swinson had her first chance to question Boris Johnson today, as he made his first statement as Prime Minister.

Here’s the full exchange from Hansard:

The 3 million EU citizens are our family, our friends, our neighbours, our carers, yet for three years they have been made to feel unwelcome in our country. They deserve better than warm words and more months of anxiety. They deserve certainty, now. The Prime Minister has made assurances, so will he back the Bill of my Lib Dem colleague Lord Oates, which would guarantee in law the rights of EU citizens? Or is he all talk and no trousers?

The answer pretty much confirmed that that was indeed the case.

The Prime Minister
I congratulate the hon. Lady on her own election and join her in insisting on the vital importance of guaranteeing the rights and protections of the 3.2 million who have lived and worked among us for so long. Of course, we are insisting that their rights are guaranteed in law. I am pleased to say that under our settlement scheme some 1 million have already signed up to enshrine their rights.

Jonny Oates explained earlier this month why his Bill was much better than settled status.

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No deal Brexit preparations: Dutch look closely but don’t see much (Part 1)

Whoever looks at British-Dutch relations, especially in trade and food (herring), you see a relationship dating back to the Roman Empire, with the Frisians (a tribe in the North of the present Netherlands) kicking off the chain of English/British-Dutch relationships. 

The modern relations can be traced back to the British-Dutch anti-Spanish alliance of queen Elizabeth I (sending over her confidant Leicester) in the Treaty of Nonsuch (1585; see Jonathan Israel’s book about the Dutch Republic; Clarendon/Oxford University Press; Oxford, 1995, p. 218-230). This treaty was implicit recognition of the Republic; and the shenanigans between Leicester and the Dutch stadholder and his minister Oldebarnevelt in 1585-87 gave definite form to the Republic, until then a confederation of rebel provinces. It ended up with Leicester returning home; but Nonsuch was reinforced and broadened in the 1598 Treaty of Westminster.

The Low Countries’ principalities trading with England (Flanders, Zeeland, Holland, Friesland) were all smaller than England, and this didn’t change with seven rebel provinces forming a republic; especially because shortly afterwards, under king James I, the union between England and Scotland started being formalized until the Acts of Union (1707). So the Dutch and Flemish peoples are used to look very closely what happens in their big neighbor  the UK, especially as it affects our (Dutch) trade relations (re-exporting a large part to the rest of the EU), and our and their national economy. The UK is around three to four times bigger than the Netherlands if you look at our populations and economies (GDP).

The hard Brexiteers around Boris Johnson are emphasising, now that a No Deal Brexit on their holy grail date of 31st  October seems ever more likely, that the British government is even better prepared than under the March Brexit deadline. 

We Dutch simply don’t believe them, because we see at best a piecemeal, halfhearted if not comically incompetent British preparation (hiring a shipping company without ships, aiming to disembark at a British port city that on BBC TV News does look more disheveled that well-prepared for intensive disembarkation operations).

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Chuka Umunna MP writes…Lib Dems are the only party committed to stopping Brexit and tackling the causes of Brexit

As the Conservative leadership contest draws to a close, with both Boris Johnson and Jeremy Hunt putting fresh paint on the impossible red lines set out by the Leave campaign, the threat of a a No Deal Brexit is closer than ever.

Both candidates are disregarding all the facts about the disastrous consequences this would have for the UK, with Boris Johnson even searching for ways to suspend Parliament to circumvent MPs to run down the clock to exit day.

Such a move would not only be a democratic outrage, but herald one of the most destructive acts of self harm on the UK ever willingly committed by our government. 

On Thursday, the Office for Budget Responsibility published its fiscal risks report. Commissioned in 2015, the report sets out to analyse the risks to public finances over the short to medium term. 

This year, the OBR devoted an entire chapter to assessing the risk of a No Deal Brexit to the UK’s finances and the findings were jaw-dropping.

Here are just 10 things the OBR warns would happen under Boris Johnson’s No Deal Brexit scenario:

1) The UK would enter a “year-long recession” at the end of 2019, with real GDP immediately falling by 2.1%.

2) The value of the pound would depreciate by 10% immediately, and remain low until at least 2024.

3) Business investment would drop due to trade costs, economic uncertainty and loss of some export markets.

4) Residential Investment and consumer spending would fall as real household income is squeezed.

5) Productivity growth would become even weaker, and remain below current projections until 2024. 

6) The growth in earnings would slow even further and remain so for the first few years.

7) Real wages would become “significantly lower”, by as much as 2.5% by 2024 compared to the last forecast.

8) Borrowing would be around £30bn a year higher from 2020-21 onwards due to tax receipts falling. This means no fiscal headroom at all for any of the tax and spend promises of Boris Johnson or Jeremy Hunt, or to allow the government to end austerity.

9) The overall impact of a No Deal Brexit and then trading on WTO rules would be a hit to GDP of 5.9%.

10) If a No Deal, WTO Brexit was combined with a stricter immigration policy for EU citizens, this hit to GDP would rise substantially, potentially as high as 9% according to the Government’s own figures.

On top of this, Brexit has already resulted in a weak pound, which has lost 17% of its value against the dollar since the 2016 vote; higher inflation; big falls in manufacturing output, construction, and business investment; and we have not even left the EU yet. 

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20-21 July 2019 – the weekend’s press releases

Conservative Party reminded of Brexit realities

Commenting on Simon Coveney’s interview on the Andrew Marr Show, Liberal Democrat Brexit Spokesperson Tom Brake said:

The Irish Deputy Prime Minister has reminded the Conservative party of the realities of Brexit today.

There will be no changes to the backstop and the fantasy of GATT 24 has been expunged once again.

The Conservatives must not be allowed to waste any more time to push the country ever closer to No Deal Brexit. Parliament must show that the only real way forward is a People’s Vote with an option to remain in the EU.

Hammond must join fight

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18 July 2019 – yesterday’s press releases

There was a bit of a glitch yesterday, as the press releases ended up in my spam folder for some reason. Things seem to be back to normal, so the usual service resumes here…

  • Welsh Lib Dems – time to embrace zero-carbon housing
  • Lib Dems: EU resolution a vital step in UK’s duty to stand up for people of Hong Kong
  • Davey demands urgent action as knife crime epidemic continues to spread
  • Umunna: OBR report shows No Deal Brexit would be unforgivable
  • Lib Dems: Johnson’s ‘fishy tales’ have no plaice in Number Ten
  • Lib Dems: Milestone victory to block no-deal
  • Gauke talks the talk but can’t walk

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16 July 2019 – today’s press releases

  • Umunna: Ministers asleep at the wheel in the face of online shopping time bomb
  • New Lib Dem leader to hold Brexit talks with Barnier
  • Lib Dems: New PM must not delay Domestic Abuse Bill

Umunna: Ministers asleep at the wheel in the face of online shopping time bomb

The introduction of Strong Customer Authentication (SCA) will lead to two-factor authentication for all online purchases. The aim of this is to cut down on fraud and improve digital security, however the Government have failed to both support retailers or inform consumers about this change.

Furthermore, it is estimated that around 2 million people do not have …

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