Johnson on the Brink of Power With U.K. in Crisis: Brexit Update

(Bloomberg) — Barring an historic upset, Boris Johnson will be named Conservative leader — he’ll have to wait a day to be prime minister — before noon. Three years after leading the Brexit campaign, the heavy favorite to beat Jeremy Hunt faces crises at home and abroad after securing the top job.Key Developments:Winner of Tory leadership contest announced at 11:45 a.m. in LondonPrime Minister Theresa May is due to step down on WednesdayIf he wins, Johnson has just over 3 months to deliver on his “do or die” pledge to deliver Brexit by Oct. 31; a group of U.K. lawmakers is planning a court battle to prevent him from suspending ParliamentMore resignations from government expected if Johnson wins, after Alan Duncan quit as foreign minister on MondayNext leader also faces heightened tensions with Iran, which seized a British tanker in the Strait of Hormuz last weekPound fallsTory MP Morgan Says Confidence Vote Unlikely (9 a.m.)Conservative MP Nicky Morgan said there’s unlikely to be a confidence motion against the government this week in Parliament, adding that MPs should give the new prime minister time to establish a Cabinet and lay out policies. The situation will become more unpredictable in September, she said.She told Bloomberg TV that while a no-deal Brexit would be a “highly undesirable outcome,” the Oct. 31 deadline should not be pushed again because businesses want the issue resolved.Morgan also called for the next prime minister to include members of the so-called One Nation caucus of moderate Tories in his Cabinet, citing Work and Pensions Secretary Amber Rudd and Health Secretary Matt Hancock.“Boris talks about unifying the party and that’s absolutely right,” Morgan said. “We have got to heal the divisions in the country, too, so he’s got to make sure there’s a spread of people around his table.”Unhappy Tories Could Back New Brexit Vote: Swinson (Earlier)Support in Parliament for a second Brexit referendum could get a boost from Tories unhappy with Boris Johnson and his apparent willingness to take the U.K. out of the European Union without a deal if he becomes prime minister, according to Jo Swinson, the new leader of the pro-EU Liberal Democrats.“There’s a chance there’ll now be more Conservative MPs, including some people who are currently or soon to be not in government, who can back a People’s Vote as a way out of this absolute Brexit mess,’’ Swinson told BBC radio. Parliament rejected a second Brexit referendum in a vote in March.Confidence Vote ‘Such a Risk’ for Tories, Gauke Says (Earlier)Justice Secretary David Gauke, who has said he’ll resign if Boris Johnson becomes prime minister, said his Conservative Party colleagues would be wary of bringing down the administration in a confidence vote because it risks bringing the Labour Party to power.“It may well end up with a Jeremy Corbyn government,’’ Gauke said on BBC radio on Tuesday. “The idea that there will be some sort of national government that gets formed, I don’t think anyone can say that whatsoever.’’Gauke’s comments reflect the debate in Westminster about far Tory rebels would go to block a government attempt to pursue a no-deal Brexit. While Gauke, Chancellor of the Exchequer Philip Hammond and former Foreign Office minister Alan Duncan have said they’ll do everything they can to prevent it, the justice secretary’s remarks indicate there may be a line they won’t cross.Earlier:Next U.K. Prime Minister Faces Crises at Home and AbroadBrexit Bulletin: Already in DoubtU.K. Lawmakers Plan Scottish Suit to Block Parliament SuspensionIran Exposes Boris Johnson’s Brexit Bombast: Therese RaphaelTo contact the reporter on this story: Joe Mayes in London at jmayes9@bloomberg.netTo contact the editors responsible for this story: Tim Ross at tross54@bloomberg.net, Stuart Biggs, Tony HalpinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

(Bloomberg) — Barring an historic upset, Boris Johnson will be named Conservative leader — he’ll have to wait a day to be prime minister — before noon. Three years after leading the Brexit campaign, the heavy favorite to beat Jeremy Hunt faces crises at home and abroad after securing the top job.

Key Developments:

Winner of Tory leadership contest announced at 11:45 a.m. in LondonPrime Minister Theresa May is due to step down on WednesdayIf he wins, Johnson has just over 3 months to deliver on his “do or die” pledge to deliver Brexit by Oct. 31; a group of U.K. lawmakers is planning a court battle to prevent him from suspending ParliamentMore resignations from government expected if Johnson wins, after Alan Duncan quit as foreign minister on MondayNext leader also faces heightened tensions with Iran, which seized a British tanker in the Strait of Hormuz last weekPound falls

Tory MP Morgan Says Confidence Vote Unlikely (9 a.m.)

Conservative MP Nicky Morgan said there’s unlikely to be a confidence motion against the government this week in Parliament, adding that MPs should give the new prime minister time to establish a Cabinet and lay out policies. The situation will become more unpredictable in September, she said.

She told Bloomberg TV that while a no-deal Brexit would be a “highly undesirable outcome,” the Oct. 31 deadline should not be pushed again because businesses want the issue resolved.

Morgan also called for the next prime minister to include members of the so-called One Nation caucus of moderate Tories in his Cabinet, citing Work and Pensions Secretary Amber Rudd and Health Secretary Matt Hancock.

“Boris talks about unifying the party and that’s absolutely right,” Morgan said. “We have got to heal the divisions in the country, too, so he’s got to make sure there’s a spread of people around his table.”

Unhappy Tories Could Back New Brexit Vote: Swinson (Earlier)

Support in Parliament for a second Brexit referendum could get a boost from Tories unhappy with Boris Johnson and his apparent willingness to take the U.K. out of the European Union without a deal if he becomes prime minister, according to Jo Swinson, the new leader of the pro-EU Liberal Democrats.

“There’s a chance there’ll now be more Conservative MPs, including some people who are currently or soon to be not in government, who can back a People’s Vote as a way out of this absolute Brexit mess,’’ Swinson told BBC radio. Parliament rejected a second Brexit referendum in a vote in March.

Confidence Vote ‘Such a Risk’ for Tories, Gauke Says (Earlier)

Justice Secretary David Gauke, who has said he’ll resign if Boris Johnson becomes prime minister, said his Conservative Party colleagues would be wary of bringing down the administration in a confidence vote because it risks bringing the Labour Party to power.

“It may well end up with a Jeremy Corbyn government,’’ Gauke said on BBC radio on Tuesday. “The idea that there will be some sort of national government that gets formed, I don’t think anyone can say that whatsoever.’’

Gauke’s comments reflect the debate in Westminster about far Tory rebels would go to block a government attempt to pursue a no-deal Brexit. While Gauke, Chancellor of the Exchequer Philip Hammond and former Foreign Office minister Alan Duncan have said they’ll do everything they can to prevent it, the justice secretary’s remarks indicate there may be a line they won’t cross.

Earlier:

Next U.K. Prime Minister Faces Crises at Home and AbroadBrexit Bulletin: Already in DoubtU.K. Lawmakers Plan Scottish Suit to Block Parliament SuspensionIran Exposes Boris Johnson’s Brexit Bombast: Therese Raphael

To contact the reporter on this story: Joe Mayes in London at jmayes9@bloomberg.net

To contact the editors responsible for this story: Tim Ross at tross54@bloomberg.net, Stuart Biggs, Tony Halpin

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