May offers to work with Labour on Brexit agreement

Theresa May has offered to "sit down" with opposition leader Jeremy Corbyn to agree on a Brexit deal based on her existing withdrawal agreement.

In a televised speech following a seven-hour cabinet meeting, where many of her ministers are understood to have opposed extending Article 50, the Prime Minister called for a further extension to the 12 April Brexit deadline in order to avoid a no-deal Brexit.

She said she wanted an extension to be as "short as possible" with the aim of coming to an agreement with Corbyn that could be presented to MPs for approval in time for next week’s European council.

May said she wanted to agree a timetable for the bill to ensure it is passed before 22 May so that the UK can avoid taking part in European parliamentary elections.

With her Brexit deal having been decisively defeated two and a half times and parliament's efforts to find a new path via indicative votes has not yet delivered an obvious alternative, May said she was "taking action to break the logjam".

"I am offering to sit down with the leader of the opposition and to try to agree a plan – that we would both stick to – to ensure that we leave the European Union and that we do so with a deal."

With strong feelings on both Leave and Remain sides of the debate and no compromise reached so far, least of all from May herself, she said this was a moment that called for "national unity" and that "we can and must find the compromises that will deliver what the British people voted for".

As the European Union has stressed that it will not reopen negotiations on the current withdrawal agreement, the talks with Corbyn would need to focus on the future relationship with the EU for a new political declaration element of a Brexit deal, as long as it "delivers on the result of the referendum".

If talks with Corbyn do not produce a single unified approach, May suggested they could instead agree "a number of options for the future relationship that we could put to the house in a series of votes to determine which course to pursue" and said the government would abide by the decision of the house but would need opposition agreement too.

Corbyn said he is “very happy” to meet May, telling reporters: "We recognise that she has made a move, I recognise my responsibility to represent the people that supported Labour in the last election and the people who didn’t support Labour but nevertheless want certainty and security for their own future and that’s the basis on which we will meet her and we will have those discussions."

Liberal Democrats leader Vince Cable said May was "piling more logs onto the logjam". He added: "Theresa May now finally seems to be accepting that she cannot get support for her deal, though her identifying Jeremy Corbyn as a source of support for Brexit is less surprising."

The pound climbed on May's seemingly softer stance, rising back up above 1.31 against the dollar and 1.17 versus the euro.

"Cynics will no doubt point out that it appears not much was achieved during the discussions with her closest MPs, but the overall tone is clearly softer from the PM and she appears to be finally waking up to the idea that her deal has no chance of passing without cross-party support," said market analyst David Cheetham at XTB.

He said the extension to Article 50 was welcomed by the pound but with only a small move higher against all its major peers.

"Downside threats remain, with the EU possibly not willing to accept this latest proposal, but the key takeaway from the perspective of the markets is that the PM is clearly not seeking to run the risk of a no-deal Brexit and this has boosted sterling," he added.

The business community likewise welcomed the positive step but were understandably wary.

Edwin Morgan, interim director general of the Institute of Directors, said: “The Prime Minister’s statement was a welcome step towards compromise, but there are still many obstacles on the path ahead. There was a clear indication of how the government sees the next steps unfolding but time is of the essence and the outcome of all this is still far from clear.

“The brinkmanship has gone on for far too long and business leaders want our politicians to put an end to this miserable uncertainty. We urge the Leader of the Opposition to work with the Prime Minister to find a solution. Both sides must play ball.”

Carolyn Fairbairn, director-general of the CBI, was so weary of the Brexit process that she abandoned most verbs and prepositions: “Welcome steps must be breakthrough not false dawn. Business confidence slumping, growth stalled and UK reputation in tatters. Tories must compromise on red lines and Labour come to table in good faith. No excuses, no time wasting, no party politics. Enough is enough.”