Great British Pound takes nosedive following Brexit resignations

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New pound coin

The Great British pound has taken a nose dive after Brexit secretary Dominic Raab, work and pensions secretary Esther McVey, junior Brexit minister Suella Braverman and Northern Ireland minister Shailesh Vara all quit the government over Theresa May’s draft Brexit deal, as key politicians called for her to be ousted as Prime Minister.

On Thursday, sterling fell more than 1% against the dollar to $1.2778 and also sank more than 1% against the euro to €1.1309, this comes after May had secured Cabinet backing for the draft Brexit agreement with Brussels.

However, in the wake of the draft agreement, which business had generally welcomed, leading Brexiter Jacob Rees-Mogg has called for the Prime Minister to be subject to a confidence vote.

If 48 letters are handed to Tory MP Sir Graham Brady, chairman of the backbench 1922 committee, a vote of confidence has to be held – this could come as early as Friday.

Analysis: Phil Smith, managing director, Business West

Businesses were hoping that the Prime Minister’s deal would present some much needed certainty and stability in the short to medium term.

Whatever the views about Brexit, we had hoped that this was a deal which would allow businesses to trade through a transition and start to plan for a future trade arrangement.

The current political instability and series of Ministerial resignations seem to create even more uncertainty, at precisely the time businesses were hoping to be able to make decisions about currently postponed investment and future growth.

It also seems to raise the prospect on a ‘No Deal’ considerably, which will deeply worry many.

A No Deal Brexit would be tremendously damaging for businesses in the region, and threaten the viability of many exporting firms – it is not a prospect that any political leader should consider.

After two and a half years it is deeply frustrating that the prospect of a sensible agreement seems to be being threatened, with no other viable form of Brexit being offered. Calm compromise and details of a realistic plan are needed urgently.

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