British government defeated in vote on No Deal scenario preparations

A government spokesman says tonight’s defeat does not change the fact the UK is leaving the EU on 29 March.

They add the government will work with parliament to make sure the tax system works smoothly in all Brexit scenarios.

British MPs backed an amendment to the Finance Bill, which would limit spending on no-deal preparations unless authorised by Parliament, by 303 to 296 votes.

This vote means the government has been defeated on measures in preparation for a no-deal Brexit.

The vote prevents ministers from introducing new tax rises in the case of a no-deal Brexit unless MPs have specifically voted in favour of leaving the EU without an agreement.

The amendment to the Finance Bill was backed by senior MPs from across the Commons, including Conservative select committee chairs Nicky Morgan and Sarah Wollaston and Labour’s Hillary Benn and Frank Field, a Brexiteer. Tory grandees Sir Oliver Letwin and Nicholas Soames also supported the move.

Government sources played down the significance of the latest defeat, saying the amendment to the Finance Bill would not have a major impact.

Liberal Democrat Brexit spokesperson Tom Brake says: “The Conservative government’s defeat this evening shows parliament’s rejection of a no deal.

“This amendment goes some way to taking no deal off the table, but it is crucial it is removed as an option entirely.

“Theresa May must stop gambling with our future. It is entirely within her power to take no deal off the table, however she is recklessly keeping it there as a scare tactic due to the lack of support for her deal.

“The only real alternative to get us out of this mess is to legislate for a people’s vote, with the option to remain in the EU.”

Responding to the result, Labour MP Ian Murray – a supporter of the People’s Vote campaign for a second EU referendum – says: “The threat of a no-deal Brexit has cynically used by the government for many months as part of their campaign to bully and intimidate parliament into voting for a bad deal that would leave us worse off and offers less control.

“Parliament has now asserted its authority and sovereignty and effectively exposed the threat of no deal as an empty one.

“The real choice facing parliament and the country is now clear.

“We can leave the EU under the terms of some version of the prime minister’s bad deal or we can keep all our rights, powers, influence and op-outs in our current deal as full members of the EU.

“Parliament remains gridlocked between these two choices, but, and as today has demonstrated, it can still act decisively.

“What it now must do is hand the decision back to the people.

“Now we know what Brexit looks like, the public should be given the opportunity to decide in a People’s Vote – is this the kind of deal we want, or is the deal we already have in the EU better?

“In the end, only the people can sort this out.”

This is a developing story based on reports from Sky, Independent and BBC.