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Sterling down as UK 'turbo-charges' no-deal plans

Credit: Reuters Studio
Published on July 29, 2019 - Duration: 01:58s

Sterling down as UK 'turbo-charges' no-deal plans

The UK is "turbo-charging" its preparations for a no-deal Brexit, the UK's foreign secretary said on Monday - something that many investors fear would disrupt the global economy and send Britain into recession.

David Doyle reports.

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Sterling down as UK 'turbo-charges' no-deal plans

Britain is "turbo-charging" its preparations for a no-deal Brexit, a senior minister said on Monday (July 29) - something many investors say would send shockwaves through the world economy and crash Britain into recession.

Amid rising concerns over a disorderly exit from the European Union, sterling dropped by 0.4% on Monday morning to $1.23, its lowest level since March 2017.

Foreign Secretary Dominic Raab said the UK does want to secure a deal, but that the EU needs to change its "stubborn" position.

(SOUNDBITE) (English) BRITISH FOREIGN SECRETARY, DOMINIC RAAB, SAYING: "It's not just going to revert to where we left off in the last negotiations.

There must be some change from the EU." EU leaders have reiterated that the Withdrawal Agreement brokered with former Prime Minister Theresa May is not up for negotiation.

But her successor, Boris Johnson, is betting that the threat of a no-deal Brexit will persuade EU's biggest powers - Germany and France - to agree to revise the divorce deal.

He was in Scotland on Monday (July 29), to promise £300m to boost the UK's devolved regions.

(SOUNDBITE) (English) BRITISH PRIME MINISTER, BORIS JOHNSON, SAYING: "The withdrawal agreement is dead, it's got to go.

But there is scope to do a new deal." But it was likely a frosty reception.

In the 2016 referendum Scotland voted to stay in the EU, and even his own Conservative Party's Scottish leader has said she will oppose a no deal Brexit.

Meanwhile, Scotland's nationalist leader Nicola Sturgeon has written to Johnson telling him that she would continue preparations for a referendum on Scotland's independence.

Questions also over Northern Ireland's future in the union.

At the weekend Irish Prime Minister Leo Varadkar raised the prospect of the reunification of EU-member Ireland and Northern Ireland in the event of a no-deal Brexit.

That follows a warning from former Prime Minister Gordon brown earlier this month that Johnson may find himself the last leader of a united United Kingdom.

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