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With Brexit voting in doubt, British companies get ready for no agreement

LONDON (Reuters) – British companies started triggering contingency plans to keep their operations operational if Britain left the European Union…

LONDON (Reuters) – British companies started triggering contingency plans to keep their operations operational if Britain left the European Union without an agreement and underlines growing concern that a political rush in London could breach an agreement with Brussels.

PHOTO PHOTO: UK Prime Minister Theresa May speaks at the United Kingdom’s (CBI) Annual Conference in London, United Kingdom on November 1

9, 2018. REUTERS / Toby Melville

Less than five months before Britain leaves EU Prime Minister Theresa May won the mission of many company on Monday for a draft divorce agreement because she carries out a charm offensive to get Britain, deeply divided over Brexit aboard.

The Bank of England also offered its support and said that the draft recall recall would help protect the economy and announce that it would give up to November 28 the publication of bank stress tests to give an analysis of how to handle a “no one shop “Brexit.

This possibility has risen in opposition to the maize agreement that unites an unlikely group of hard Brexit campaigns in the conservative party, Maize Northern Irish allied in parliament and EU supporters.

With no apparent majority in parliament, May may lose the vote on its draft agreement, which is likely to be held next month. Such a defeat may open the possibility of Britain leaving without an agreement, or even brexit postponement or not happening at all.

The Northern Ireland Democratic Unionist Party, which recruits maize’s minority government, showed its hand late on Monday when it did not vote with the government on the financial statement.

Its brexite spokesman Sammy Wilson described this as “a political message”.

“We had to do something to show our dissatisfaction,” he said.

Wilson later told Sky News that his party would vote against maize agreement if it came to parliament, but meanwhile, DUP legislators would push the government to change the strategy of Brexit, Britain’s largest political shift in almost half a century.

The Prime Minister may have hoped to resist what is a draft divorce that the EU should fade after an attempt to free her from Brexit campaigns in her party appeared to be fizzling out.

She could still hope for some in the main resistance Labor Party will return its draft agreement.

But also on Monday, those who want her to keep the closest ties with the EU in both her conservative and working parties forced her government to another embarrassing climb by promising to publish an economic impact assessment comparing her agreement to stay in block .

STRONG CHOICE

May have warned legislators they have a simple choice: return her business or risk launching no resignation or delay to Brexit.

But some of her critics accept these terms.

Doubts about the vote in parliament have pushed companies to start planning a “no deal” Brexit, some of which have described as the worst scenario that does not give confidence in supply lines and trading conditions.

Electrical Components ( ECM.L ), which stores more than half a million industrial and electronics products, said it would spend £ 30 million ($ 39 million) to increase its holdings of fast lines in Britain and Europe. AO World ( AO.L ), an online electrical and white goods group, said it could increase inventory to mitigate friction in the supply chain while Compass ( CPG.L ), the world largest catering company, said it was looking to build inventory and change its menus before Brexit next March.

But Bank of England Governor Mark Carney told a parliamentary committee that most companies do not have contingency plans.

BoE said it would meet a request from Parliament’s Finance Committee to give an analysis of how the draft Brexit divorce agreement “will affect the bank’s ability to deliver its statutory powers for monetary and financial stability, including in a” no deal no transition scenario. “

More than two years after the British voted 52-48 percent to leave the EU, it is still unclear how, under what conditions or if it will go as planned March 29, 2019.

The EU is due to hold a summit to discuss the draft agreement on November 25. Some Eurosceptic ministers in corn cabinet want her to rewrite parts of it, but the EU governments have largely decided this.

Justice Secretary David Gauke said that talks now proceeded to Britain’s future relationship with the EU.

“The agreement is essentially done. We have had thousands of hours of negotiations with the European Commission and we have reached an agreement where compromises have occurred on both sides, he told BBC Radio.

“The recall is in line with our main goals regarding UK integrity, which is so important to all of us in the government, especially the prime minister.”

For a graphical report of resignation of the British ministers, se.nr.rs/2PI3f1S

Writing by Guy Faulconbridge and Elizabeth Piper; Further reporting by Helen Reid in London; Editing David Stamp

Our Standards: Thomson Reuters Trust Principles.

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