Theresa May's government survives no-confidence vote after Brexit defeat

By Sheena McKenzie and Lauren Said-Moorhouse, CNN

Updated 6:06 p.m. ET, January 16, 2019
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5:44 p.m. ET, January 15, 2019

Capturing the drama

Scenes from inside the House of Commons on Tuesday.
Scenes from inside the House of Commons on Tuesday. House of Commons/Twitter

Anti-Brexit supporters celebrate in Parliament Square, central London, following the outcome of the vote. 
Anti-Brexit supporters celebrate in Parliament Square, central London, following the outcome of the vote.  OLI SCARFF/AFP/Getty Images
House speaker, John Bercow, brings order to room.
House speaker, John Bercow, brings order to room. Twitter/House of Commons

Patrons at a Whitehall pub watch events unfold in Westminster.
Patrons at a Whitehall pub watch events unfold in Westminster. TOLGA AKMEN/AFP/Getty Images

5:06 p.m. ET, January 15, 2019

"Bitter day": Europe reacts to May's defeat

European Parliament President Antonio Tajani tweeted his response to the events that unfolded in Westminster on Tuesday night.

Spain's prime minister, Pedro Sanchez, said his government "regrets" the outcome in a tweet on his official account.

He continued: "The deal is the best possible deal and a disorderly exit would be negative for the #UE and catastrophic for the United Kingdom. Spain works on contingency measures and prioritizes the rights of citizens and residents."

The Irish Government released a similar statement, saying that the result prolongs an uncomfortable limbo. It called upon Theresa May to outline her plan to resolve the stalemate.

"We will then consider what next steps to take in consultation with our EU partners," the statement continued.

German Vice Chancellor Olaf Scholz described the day as a "bitter day for Europe," according to AFP.

"We are well prepared -- but a hard Brexit would be the least attractive choice, for the EU and GB (Great Britain)," the news agency reported Scholz saying.

5:06 p.m. ET, January 15, 2019

Boris Johnson: "We need a new deal"

Former UK Foreign Secretary Boris Johnson spoke following the government's defeat in the House of Commons.

"We need a new deal, a better deal. For that to be done, [Theresa May] needs to go back and get something that really allows us to take advantage of Brexit in terms of real free trade deals, real ability to set our own laws, in a way that this doesn't.
There is time to do it. It just needs to be done with determination."
4:35 p.m. ET, January 15, 2019

"Changes are required": DUP says it will work with Theresa May to secure a better deal

Arlene Foster, leader of the Northern Irish Democratic Unionist Party (DUP), welcomed tonight's "No" vote on the proposed Brexit deal, saying the UK Parliament "acted in the best interests of the entire United Kingdom."

In a statement, she continued:

The House of Commons has sent an unmistakable message to the Prime Minister and the European Union that this deal is rejected.
Mrs May will now be able to demonstrate to the Brussels’ negotiators that changes are required if any deal is to command the support of Parliament.
We will work with the Government constructively to achieve a better deal. That is our focus. Whilst some may wish to use this defeat to boost their political ambitions, we will give the Government the space to set out a plan to secure a better deal.
Reassurances whether in the form of letters or warm words, will not be enough. The Prime Minister must now go back to the European Union and seek fundamental change to the Withdrawal Agreement.
We want an orderly exit from the European Union with a sensible deal which works for Northern Ireland and the rest of the United Kingdom.

Since the 2017 election, May has not held an overall majority in the Commons and has had to rely on the DUP to prop up her minority government.

4:18 p.m. ET, January 15, 2019

Business leaders fret over uncertainty

The pound may have shrugged off tonight's dramatic outcome, but leaders of Britain's largest business groups appear less sanguine. Here's what they said after the vote:

Helen Dickinson, Chief Executive, the British Retail Consortium:

The events in Westminster are cause for serious concern. A no deal Brexit means the public will face higher prices and less choice on the shelves.”

Carolyn Fairbairn, CBI Director-General:

Every business will feel no deal is hurtling closer. A new plan is needed immediately. This is now a time for our politicians to make history as leaders.”

Miles Celic, Chief Executive Officer, TheCityUK:

The outcome of today’s vote prolongs uncertainty and will continue to depress business confidence. The lack of clarity on the path to an orderly Brexit risks disruption and financial instability on both sides of the Channel.”

Catherine McGuinness, Policy Chair, the City of London Corporation:

Parliament’s decision to reject the Government’s deal means businesses across the UK will continue to face uncertainty regarding our relationship with the European Union.”
3:52 p.m. ET, January 15, 2019

How does a motion of no confidence work?

Labour leader Jeremy Corbyn filed a motion of no confidence in the UK government following the rejection of May's Brexit agreement with the bloc.

What we know about the vote: It will take place Wednesday evening at 7 p.m. (2 p.m. ET).

How it works: The motion is put to the House, which then votes just like tonight (by walking into division lobbies). If the government loses the vote then May -- or another leader -- could attempt to form a new government and win the confidence of the House in 14 days.

If she is unsuccessful, a general election will be triggered -- which could come as soon as 17 days after losing this second vote.

3:33 p.m. ET, January 15, 2019

The pound strengthens after May's defeat

The British pound has reclaimed most of the ground it lost earlier in the day. It's now trading at just over 1.28 against the dollar, almost flat on the day.

At one point before Theresa May’s Brexit vote it had been trading below 1.27 against the dollar, a drop of 1.5%.  

Read more from CNN Business:

4:10 p.m. ET, January 15, 2019

In full: May statement following Brexit defeat

From CNN's Max Foster

In the immediate aftermath of her historic defeat, Theresa May touched on what is likely to happen next. Here's her complete statement to the House:

Mr Speaker, the House has spoken and the Government will listen.
It is clear that the House does not support this deal. But tonight’s vote tells us nothing about what it does support. Nothing about how -- or even if -- it intends to honor the decision the British people took in a referendum Parliament decided to hold.
People, particularly EU citizens who have made their home here and UK citizens living in the EU, deserve clarity on these questions as soon as possible. Those whose jobs rely on our trade with the EU need that clarity. So with your permission Mr Speaker I would like to set out briefly how the Government intends to proceed.
First, we need to confirm whether this Government still enjoys the confidence of the House. I believe that it does, but given the scale and importance of tonight’s vote it is right that others have the chance to test that question if they wish to do so. I can therefore confirm that if the Official Opposition table a confidence motion this evening in the form required by the Fixed Term Parliaments Act, the Government will make time to debate that motion tomorrow. And if, as happened before Christmas, the Official Opposition decline to do so, we will – on this occasion – consider making time tomorrow to debate any motion in the form required from the other opposition parties, should they put one forward.
Second, if the House confirms its confidence in this Government I will then hold meetings with my colleagues, our confidence and supply partner the DUP, and senior parliamentarians from across the House to identify what would be required to secure the backing of the house. The Government will approach these meetings in a constructive spirit, but given the urgent need to make progress, we must focus on ideas that are genuinely negotiable and have sufficient support in this House.
Third, if these meetings yield such ideas, the Government will then explore them with the European Union.
Mr Speaker I want to end by offering two reassurances.
The first is to those who fear that the Government’s strategy is to run down the clock to 29th March. That is not our strategy. I have always believed that the best way forward is to leave in an orderly way with a good deal and have devoted much of the last two years to negotiating such a deal. As you confirmed Mr Speaker, the amendment to the business motion tabled last week by my Right Honorable and Learned Friend the Member for Beaconsfield is not legally binding, but the Government respects the will of the House. We will therefore make a statement about the way forward and table an amendable motion by Monday.
The second reassurance is to the British people, who voted to leave the European Union in the referendum two and a half years ago. I became Prime Minister immediately after that referendum. I believe it is my duty to deliver on their instruction and I intend to do so.  
Mr Speaker every day that passes without this issue being resolved means more uncertainty, more bitterness and more rancor. The Government has heard what the House has said tonight, but I ask Members on all sides of the House to listen to the British people, who want this issue settled, and to work with the Government to do just that.

 

3:27 p.m. ET, January 15, 2019

Donald Tusk poses a big question

Donald Tusk, the President of the European Council, has raised the prospect that tonight's vote could lead to Brexit being cancelled:

It should be noted that Tusk has always maintained Brexit is a bad idea, and made clear he wishes that Britain would stay in the EU.

And despite the political chaos in the UK, none of the main political parties currently supports reversing the referendum result.