Investing.com - Boris Johnson’s government lost its working majority on Tuesday afternoon following a defection of one of its MPs to the Liberal Democrats.
Parliamentary proceedings can be watched live in the video link below.
Member of Parliament for Bracknell Phillip Lee crossed the floor to join the Liberal Democrats, defecting from the Conservative Party.
Lee’s defection to the Lib Dems, led by Jo Swinson, proves a significant loss for Boris Johnson’s government as it now means the government loses its working majority.
Parliament will vote to pass a motion on Tuesday evening that would see parliament take control of the parliamentary agenda on Wednesday.
The motion was tabled by a coalition of cross-party MPs to introduce legislation which aims to block a no deal Brexit. The bill would compel the government to ask the European Union for a Brexit extension beyond 31 October.
Should MPs vote in favour of the bill, it is expected that the PM will call a general election. Johnson is committed to leaving the European Union on the 31 Oct. and is reported to view the motion as a vote of confidence in his leadership. If an election is called, it could be as early as Oct. 14.
Lee said in a letter to tender his resignation that “the Conservative Party had become a narrow faction in which one's Conservatism is measured by how recklessly one wants to leave the European Union”.
Mounting Brexit uncertainty and fears of a snap election saw the pound fall below $1.20 on Tuesday morning, to its lowest level since a flash crash in October 2016. GBP/USD staged a recovery into the afternoon, sitting at 1.2087 at 15:45 GMT.
EUR/GBP dipped 0.17% to 0.9072.
Watch proceedings from the House of Commons, including the vote scheduled for 21:00 GMT live in the video link below: