Cabinet ministers are reported to have claimed that the possibility of Article 50 being extended is looking increasingly likely, accoridng to The Evening Standard. A senior minister was quoted as saying: “Certainly, if there was defeat on Tuesday and it took some time before it got resolved, it’s hard to see how we can get all the legislation through by March 29.” The claims of Brexit being pushed back proved positive for the pound, with Sterling inching higher against the euro and US dollar. As of 14:30 GMT, the pound was trading at €1.1141 against the euro and $1.2789 versus the US dollar.
The speculation of a Brexit delay comes as MEPs were summoned to Downing Street today.
Number 10 has said the meeting is normal but MEPs have sparked rumours that the Prime Minister is plotting to extend Article 50.
However earlier this morning a Government spokesperson said Mrs May had “ruled out” extending Article 50.
The pound had been treading water earlier today following the release of monthly gross domestic product (GDP) data, which fared better than expected.
The UK economy grew by 0.2 percent in November, above expectations of a 0.1 percent rise forecast by economists, according to data from the Office for National Statistics (ONS).
However, the picture was not entirely positive as GDP rose 0.3 percent over the three months to November compared with the previous quarter, marking the lowest rise in six months.
Construction grew by 0.6 percent in November, month on month, while services activity rose by 0.3 percent.
Manufacturing contracted by 0.3 percent and production as a whole shrunk by 0.4 percent.
Head of national accounts at the ONS Rob Kent-Smith said: “Growth in the UK economy continued to slow in the three months to November 2018 after performing more strongly through the middle of the year.
“Accountancy and house-building again grew but a number of other areas were sluggish.
“Manufacturing saw a steep decline, with car production and the often-erratic pharmaceutical industry both performing poorly.”
Mike Jakeman, senior economist at PwC, said: “The latest monthly GDP data adds to existing impressions that the economy is slowing as uncertainty over Brexit intensifies.
“The clear loss of momentum in the UK economy since the summer is as expected, given the ongoing lack of clarity on Brexit.
“For as long as this remains unclear, businesses will continue to defer major investment plans and households will reconsider making big-ticket purchases.”
Separately, the ONS data dump also showed that Britain’s total trade deficit narrowed by £200million to £7.9billion in the three months to November 2018.
Both goods and services exports increased £100 million more than their respective imports.
The figures come as Prime Minister Theresa May again attempts to gain parliamentary approval for her Brexit deal.
The meaningful vote on the terms of Britain leaving the European Union (EU) is set to be held on January 15.