The Bank of England has warned that families and businesses across the EU will have higher borrowing costs and financial turmoil as authorities have no prepare for a no-deal Brexit.This comes as Emmanuel Macron has sparked a vicious backlash for claiming Brexit was the result of an “irresponsible lie” and saying the situation represents the worst crisis since the Second World War. In the French president’s letter to the ‘Citizens of Europe’, published in a number of publications across the continent and in the UK, he said: “Who told the British people the truth about their post-Brexit future?”
Read More: Macron anti-Brexit RANT: French President brands Brexit a ‘DANGER’ to the EU and a ‘TRAP’
Perhaps he could look to his own people first before lecturing Britain
Many were quick to point out Mr Macron’s intervention comes as France has faced months of demonstrations by the Gilets Jaune ‘yellow vest’ protesters, which have killed 15 people and injured 1,800.
Hard-left French leader Jean-Luc Melenchon has called Macron “the most ridiculous leader in Europe, one who is unable to solve a problem in 16 weeks”.
And last night the Leave.EU campaign group tweeted: “Perhaps he could look to his own people first before lecturing Britain”.
Read More: Macron’s EU Blow: Another key ally of French president LOSES interest in him
The Yellow Vest movement has led to widespread protests across France
Former MP Douglas Carswell tweeted: “Efforts to organise Europe by top down design are destroying Europe.
“The fools that preside over Europe are too arrogant to see this. A tragedy.”
Another Twitter user, @phil_328, said: “I think Macron needs to get his own house in order. Violent protests every week over his policies. He knows, as does the EU, if there were more referendums, he’d be in trouble.”
See below for Brexit updates throughout the day:
1:57pm update: Labour’s John McDonnell demands Hammond ‘stands up’ to Mrs May
Labour’s John McDonnell has challenged the Chancellor of the Exchequer Philip Hammond to “find a backbone to stand up to the Prime Minister and the ERG to prevent a no deal or a bad deal.”
He said: “I can understand why the Chancellor has broken convention today in not responding because I think he would be ashamed of responding, because let me tell them what the answer is.
“If the DUP is worth £100 million, what Labour MPs were offered yesterday was £6 million. But let me ask the Chancellor to undertake another calculation. Seven days ago he was forced to publish the Government’s assessment again of a no-deal Brexit, how much it would cost this country.
“And it was in today’s prices nearly £200 billion. How much of a threatened cost to this country will it take this chancellor to find a backbone to stand up to the Prime Minister and the ERG to prevent a no deal or a bad deal.
“Or is the Secretary of State for Work and Pensions (Amber Rudd) the only Cabinet minister willing to put country before career?”
1:37pm update: EU could be left with financial problems after Brexit says Bank of England
The Bank warned that businesses are at risk of being cut off from millions of derived in the UK, which would affect loans such as a fixed-rate mortgage.
The EU has not agreed to let their businesses use UK banks and so they risk being cut off from lenders that provide half of its finance.
1:16pm update: Emergency Brexit debate scheduled for this afternoon
Speaker John Bercow has approved an emergency debate this afternoon on ‘No Deal’ preparations and ferries.
Transport Secretary, Chris Grayling, is expected to speak on Brexit and on the plans being made for a no-deal exit.
Theresa May is expected to go to Brussels on Sunday
12:21pm update: BMW says it would ‘even consider’ ending production at its Oxfordshire site if there was a no-deal Brexit
In September BMW said it was moving the annual maintenance shutdown for its Mini plant in Oxford to April in case of Brexit disruption.
All of the UK’s car industry has been planning contingency measures with how they would cope with a no-deal Brexit.
The company also said they would “not be very happy” with a two to three month Brexit delay.
12:13pm update: Bank of England warns EU must prepare for a no-deal Brexit
The Bank warned that possible problems for EU borrowers could include higher interest rates on loans and nine million EU insurance policyholders risk not being able to make claims or pay premiums after Brexit.
The Bank also claimed that customers in the EU are not ready to do business with newly created units of banks and exchanges in the UK.
Labour MPs protest against Brexit outside parliament
12:02pm update: A no-deal Brexit would not be ‘Armageddon’ says former minister
Suella Braverman said the UK would be “good to go” for withdrawal on World Trade Organisation terms.
Ms Braverman said: “I don’t think we would see the Armageddon that’s been predicted.
“I am not saying a WTO Brexit would be without challenge, but those challenges are surmountable. We have already put in place extensive plans and contingency measures – so have the EU and other member states – to minimise any disruption.
“At Dover, Operation Brock is there to accommodate any potential queues, but it is very possible that they might not even materialise, because of arrangements.
“At the end of the day, French and German importers will want to get their goods to purchasers in the UK. There may be political postulating but business and jobs will matter more than a speech by Emmanuel Macron.”
11:55am update: Toyota boss warns against a no-del Brexit
A senior executive at the car giant has warned that a no-deal Brexit would make it “extremely complicated” for them to build new models in the UK.
Chairman of Toyota’s European operations, Didier Leroy, said a no-deal Brexit would be “terrible”.
Mr Leroy said Parliament should decide what would be best for employment in the UK when voting next week on whether to leave without a deal.
11:29am update: Theresa May is expected to fly to Brussels on Sunday to meet Juncker
Mrs May will unveil her deal with Jean-Claude Juncker to MPs on Monday morning, a day before Parliament votes again.
A Number 10 source has said “there definitely remains more work to be done”.
Any deal successfully agreed by MPs would still have to be ratified by the European Parliament.”
Geoffrey Cox has headed to Brussels for a last minute attempt at any changes to the deal
11:02am update: Expert lawyer urges Tory MPs to risk long delay rather than back a bad deal
Martin Howe QC has called on Tory MPs to risk a long delay on leaving the EU rather than leave with any deal that Theresa May brings back from Brussels.
Writing in the Conservative Home website, Mr Howe said: “The problem with May’s deal is that it poisons Brexit by closing off the freedom of action which is the whole point of Brexit, and drains away its advantages.
“If Brexit supporters are complicit in miring the UK for a decade or a generation in such a terrible vassal arrangement with the EU, inevitably calls will grow for us to re-join the EU in order at least to get back a vote on the rules which we have to follow.”
10:56am update: Brexiteers warn May not to give them a late deal and to give them time to make a judgement
Tory Brexiteers told Theresa May not to give them a last-minute legal deal with Brussels on the Irish backstop and expect them to vote in favour of it.
The staunch European Research Group (ERG) said they wanted to see details of any agreement made between Geoffrey Cox and EU negotiators before any vote next week.
The ERG said they would back a compromise potentially if they had the time to make a judgement before any vote.
The possible outcomes of what could happen after the Brexit vote
10:50am update: The European Cental Bank (ECB) and Bank of England activate a currency swap
Under the swap agreement, the Bank of England will offer to lend euros to UK banks on a weekly basis and the ECB will receive pound sterling from the Bank of England in exchange for the euro.
The European Central Bank said in a statement: “The activation marks a prudent and precautionary step by the Bank of England to provide additional flexibility in its provision of liquidity insurance, supporting the functioning of markets that serve households and businesses.
“As part of the same agreement, the Eurosystem would stand ready to lend pound sterling to euro area banks, if the need arises.”
10:14am update: Norway agrees deals with Britain to maintain transport via air, sea and land in the case of a no-deal Brexit
Norway’s Foreign Secretary, Ine Eriksen Soereide, said: “We already have in place, or are in final negotiations of, policies on air travel, maritime and road transport, and trade in goods.”
Police trying to control Yellow Vest protesters in France
10:07pm update: Bank of England warns EU must do more to stop Brexit disruption
In its FPC report, the Bank of England said: “Some disruption to cross-border services is possible and, in the absence of other actions by EU authorities, some potential risks to financial stability remain.
“Although these would primarily affect EU households and businesses, they could also be expected to spill back to the UK in ways that cannot be fully anticipated or mitigated.”
10:03am update: Shoppers have started to stockpile for a no-deal Brexit
One in 10 shoppers have started to stockpile food to prepare for a no-deal Brexit, according to one survey.
Head of retail and consumer insight at Kantar Worldpanel, Fraser McKevitt, said: “Despite one in 10 shoppers saying they have started stockpiling groceries and a further 26% reporting that they are considering doing so, this has not been borne out in sales just yet.”
Macron has faced a backlash for his anti-Brexit comments
9:37am update: All eyes are on Geoffrey Cox today as he heads to Brussels today
Theresa May’s top government lawyer is heading to Brussels today in a bid to secure changes to a Brexit deal.
May is hoping that Attorney General Mr Cox can convince eurosceptic lawmakers that he has done enough to remove the threat of the UK ending up in the EU’s customs union.
DUP Brexit spokesman Sammy Wilson has voiced concern at the possible success of the Brussels trip.
He said: “Having thrown away the option of no deal it’s very unlikely Stephen Barclay and Geoffrey Cox are going to come back with anything which will satisfy parliament”.
9:11am update: Eurostar has dismissed warnings over no-deal Brexit queue havoc
Eurostar has dismissed the warning that a no-deal Brexit will lead to long queues at St Pancras International Station in London.
Chief executive of Eurostar, Mike Cooper, said the firm is “clearly hoping for the best but we are planning for all eventualities”.
Mr Cooper also said: “There is still 24 days to go and there is work still to be completed, we are in a great position, we have got operating licences in place, our safety certificates will be valid, e-gates will be valid and will be used as well.”
Theresa May is depicted with a Pinocchio nose reading “Brexit” at a parade in Germany
8:51am update: Foreign Secretary Jeremy Hunt said EU giving ‘reasonably positive’ signals about Theresa’s May Brexit deal
Mr Hunt said: “Time is very short. But, compared to where we were a month ago the situation has been transformed in a positive direction.
“I think the signals we are getting are reasonably positive, I don’t want to overstate them because I think there is still a lot of work to do.
“I think they (the EU) are beginning to realise that we can get a majority in parliament because they are seeing signals coming from the people who voted against the deal before who are saying, crucially, they are prepared to be reasonable about how we get to that position that we can’t legally be trapped in the backstop.”
8:22am update: Talks resume today between the UK and the EU over the backstop
Ministers are hoping to make changes to Theresa May’s Brexit deal that will get the backing of MPs next week.
Brexit Secretary Stephen Barclay and Attorney General Geoffrey Cox are due to meet EU officials in Brussels with regards to the backstop plan and to discuss how to avoid border checks in Ireland.