Court Rules Parliament Suspension `Unlawful': Brexit Update

(Bloomberg) — Prime Minister Boris Johnson is trying to thrash out the divorce deal he says he wants with the European Union, out of the glare of Parliament since its suspension on Monday night. But a Scottish court ruled his decision to prorogue the legislature is “unlawful,” sowing yet more confusion and setting up a showdown in the Supreme Court next week.

Key Developments:

Johnson held talks Northern Irish Democratic Unionist Party leader Arlene Foster late TuesdayFoster ruled out a full Northern Ireland-only backstop, but told the BBC the party is “exploring” ideas including an all-Ireland agri-foods zoneGerman Chancellor Angela Merkel pledged to work until the ‘last day’ to secure a Brexit agreementScottish appeals court rules suspension of Parliament is ‘unlawful,’ setting up Supreme Court showdownPound gains for a third day as traders see fresh approach to Irish border boosting chances of a deal

Government ‘Disappointed’ in Court Ruling (10:40 a.m.)

A spokesman for the governmenthas responded to the Scottish court ruling (see 10:15 a.m.), confirming it will appeal the decision.

“We are disappointed by today’s decision, and will appeal to the U.K. Supreme Court,” the spokesman said. “The U.K. government needs to bring forward a strong domestic legislative agenda. Proroguing Parliament is the legal and necessary way of delivering this.”

Starmer: Govt Not Making Progress in EU Talks (10:20 a.m.)

In a speech to the Trades Union Congress, opposition Labour Party’s Brexit spokesman Keir Starmer told the audience not to be fooled by government claims to be making progress in Brexit negotiations with the EU. The U.K. hasn’t even made any proposals to the EU side, he said.

“The truth is I don’t think Johnson has the first idea how to negotiate a deal that protects jobs and rights,” Starmer said. “For the Tories, that’s not what Brexit is about.”

Starmer said Brexit would be a central issue in any general election and that voters are “yearning to move on.” He said a referendum is “the only way forward” and Labour wants a ballot that includes Remain and a “credible” option for leaving the bloc.

Scottish Court: Parliament Suspension ‘Unlawful’ (10:15 a.m.)

A Scottish appeals court ruled that Prime Minister Boris Johnson’s suspension of Parliament is unlawful, sowing even more confusion into the deadlocked British political system ahead of the Oct. 31 Brexit date.

The judges deferred implementing the ruling until the U.K. Supreme Court takes up the issue next week. A group of more than 70 lawmakers had argued the premier’s move was unconstitutional because it curtailed debate in the run-up to the deadline for Britain’s exit from the European Union.

U.K. Parliament’s Suspension is Unlawful, Scottish Court Rules

Leadsom Says U.K. Wants Irish Backstop Removed (10 a.m.)

In her media round on Wednesday, Business Secretary Andrea Leadsom said the government is “negotiating very hard’’ with the EU to “very explicitly remove the backstop from the withdrawal agreement.’’ She told BBC TV that Boris Johnson is “seeking alternative creative ways’’ to avoid a border between Northern Ireland and the Republic of Ireland.

She declined to “negotiate in public’’ on what those solutions may be, but said they range from technological solutions to pre-customs checks. “Essentially what we will be doing is ensuring we protect the United Kingdom and the integrity of the United Kingdom internal market,” she said.

MPs are discussing the revival of an idea to put a border down the Irish Sea. That would make the province the only part of the U.K. to remain aligned to European Union rules, allowing the free flow of goods over the land border with the Irish Republic until alternative arrangements can be agreed.

It’s an idea that has caused anger in the Democratic Unionist Party, who have 10 MPs in the U.K. Parliament, because they don’t want to be treated differently to the rest of the U.K.

In an interview with Bloomberg TV, Leadsom appeared to reassure the DUP: “We won’t do anything that undermines the integrity of the U.K.” either politically “or from the point of view of harming the U.K. internal market,” she said.

Foster: Johnson Gave Assurances on Backstop (Earlier)

DUP Leader Arlene Foster told BBC Radio Ulster on Wednesday that Johnson gave her assurances that he is not pushing for a Northern Ireland-only backstop. But she didn’t rule out an all-Ireland zone for livestock and agricultural goods — which Johnson has said could represent the “germ” of a solution to the border issue.

“What we’re doing is exploring ideas,” Foster said. “What we’re doing at the moment is working with the prime minister to try and find a deal what works for us in Northern Ireland, works for the Republic of Ireland, and our neighbors in the Republic of Ireland, but also means we leave the European Union, the United Kingdom. all together.”

Merkel to Work Until ‘Last Day’ to Secure Deal (Earlier)

German Chancellor Angela Merkel said her government will work until the “last day” to ensure the U.K. leaves the European Union in an orderly way, but insisted Germany is ready for a no-deal Brexit.

“I’m firmly convinced as before that we have every opportunity to do it in an orderly fashion — and the German government will work until the last day to ensure that that’s possible,” Merkel told lawmakers on Wednesday. “But I can also say that we’re prepared for a disorderly exit.”

Spain Says U.K. Is Heading for a No-Deal Brexit (Earlier)

Spain won’t allow further concessions to the U.K., which now seems set to leave the European Union without an agreement, acting Prime Minister Pedro Sanchez said.

No further negotiation of the withdrawal agreement already endorsed by the EU is possible and there is no room for further concessions, Sanchez told the Spanish parliament in Madrid on Wednesday.

“What some months ago seemed unthinkable — a hard Brexit or Brexit without agreement — has now become a more than probable scenario,” Sanchez said.

Earlier:

Four Ways That Britain’s Brexit Drama Could Play Out NextEU Appointments Bring Good News for Ireland: Brexit BulletinBelfast Court to Rule Thursday on Brexit Peace-Plan CaseCarney Says Brexit-Hit Pound Looks Like Emerging Market Currency

–With assistance from Alastair Reed and Jonathan Browning.

To contact the reporters on this story: Kitty Donaldson in London at [email protected];Charles Penty in Madrid at [email protected];Jessica Shankleman in London at [email protected]

To contact the editors responsible for this story: Tim Ross at [email protected], Stuart Biggs, Thomas Penny

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