LONDON - (Labour Buzz) Labour will demand that the Chancellor of the Exchequer, Sajid Javid, make a statement to the House of Commons concerning short positions against the pound in the lead up to a possible no deal Brexit. The Shadow Chancellor John McDonnell will be seeking the statement.
It is unlikely that Javid will be able to undertake the statement given he is at the Conservative Party Conference in Manchester and is expected to make a speech there to activists.
Labour has asked the Cabinet Secretary, Sir Mark Sedwill, to launch an investigation into the prime minister and his relationship with top donors to his campaign and to the Conservative Party.
Following the 2016 EU referendum the pound collapsed, and it is expected similar tremors will be felt if the United Kingdom leaves the EU on October 31 with no deal. Hedge fund managers and currency speculators were among donors who supported the Vote Leave campaign in 2016 which Boris Johnson led. They have also supported Mr Johnson’s campaign to become Conservative leader earlier this year.
This weekend, the former Chancellor of the Exchequer Philip Hammond suggested that supporters of the prime minister would profit from a falling pound. According to the latest Commodity Futures Trading Commission data, hedge funds have $6.3billion short against sterling. This is significantly lower than the $7.8billion wagered in August.
The UK is set to leave the EU on October 31. The House of Commons has voted to prevent a no-deal Brexit and to force the Prime Minister to write to Brussels to seek an extension. It is unclear at this stage what will happen. The Prime Minister and his spokespersons have said the government will obey the law, but that the United Kingdom will not seek an extension.
(Written by Brendan Chilton, edited by Sam Gallagher)