British business leaders call for taking no-deal option off table

British Business leaders called for taking the no-DEAL option off the table to minimize disruption to the economy, after the UK parliament voted down Prime Minister Theresa May's revised Brexit DEAL on Tuesday evening.

Members of Parliament (MPs) voted 391-242 against the revised DEAL reached between the British government and the European Union in last-ditch talks in Strasbourg, France on Monday. It was the second heavy defeat for the Brexit DEAL since it was rejected by a margin of 230 in January.

Carolyn Fairbairn, Director-General of Confederation of British Industry, said: "Extending Article 50 to close the door on a March no-DEAL is now urgent. It should be as short as realistically possible and backed by a clear plan. Conservatives must consign their red lines to history, while Labour must come to the table with a genuine commitment to solutions."

"It's time for Parliament to stop this circus," she said.

Miles Celic, Chief Executive Officer of TheCityUK, said: "We need a rapid agreement on the way forward to protect customers and jobs. This is a vital part of keeping the UK at the top of the global premier league of international financial centers - something that is in the interests of customers at home and across Europe."

"Parliament must demonstrate that it will heed these repeated warnings. It is profoundly obvious that neither government nor many Businesses are ready for a disorderly exit - and this must not be allowed to happen on March 29th, whether by default or by design," said Adam Marshall, Director General of the British Chambers of Commerce.

"Businesses have been failed over and over again by Westminster in recent months, but allowing a messy and disorderly exit on March 29th would take political negligence to new extremes," Marshall said.

The British pound became volatile after the vote. Market watchers say the vote has undoubtedly been the focus for currency markets and the value of pound will be subject to Brexit uncertainties in the coming days as parliament members will vote to decide whether they support a no-DEAL Brexit or delayed Brexit.

The pound has fluctuated and been particularly sensitive to the Brexit process. It rose strongly on hopes of a Brexit DEAL after Theresa May said on Monday she had secured "legally binding" changes from the EU to the Irish backstop, which means the insurance policy designed to avoid a hard border in Ireland, could not "become permanent".

However, the British currency quickly began to shed all its previous gains since earlier Tuesday when British Attorney General Geoffrey Cox said the legal risk of the UK being tied to EU rules after Brexit "remains unchanged", and the country would not be able to leave the backstop without EU agreement.