Met Traders

Supreme Court Rules On Brexit

Posted January 24, 2017 Ashley Chadwick

This morning the UK Supreme Court upheld the lower court’s ruling that Parliament would need to be consulted on the triggering of article 50. This ruling passed 8-3 and means that a bill will need to be presented to Parliament and voted on.

Also ruled on was whether the devolved Governments would be able to vote on the triggering of article 50. The Supreme Court unanimously ruled that they would not get a vote. If they had been given a vote, then it is likely that Scotland, mainly ruled by the Scottish National Party would have caused a delay to the triggering of article 50.

Given this result was largely expected it is unlikely to throw a spanner in the works for the Government’s plans for Brexit. Rumours have it that they already have a draft of the bill now needed ready to be presented to Parliament. This means article 50 is likely to be triggered by the end of March, the deadline that PM May self imposed. Many MPs will vote in favour of triggering article 50, respecting the will on the country and their constituents who largely voted in favour of Brexit. Labour leader Corbyn has said after the ruling, that Labour will respect the referendum result and vote to trigger article 50. The Lib Dems have said they will only vote in favour, if the end deal is put a public vote. This will not happen and with just 9 MPs, the Lib Dems do not have a lot of power.

Naturally, the ruling sparked volatility in the Pound. Initially the Pound rallied about 40 pips against the dollar. However, it swung the other way once it became clear that Scotland, Wales and Northern Ireland would not get their own votes. This was seen as the last way to delay the triggering of article 50. This saw the Pound slide over 90 pips against the Dollar. This move again proved to be overdone and Cable quickly returned to levels seen before the announcement. This could be expected as the ruling did come in line with expectations and little has changed with regards to the future of Brexit.