May wins confidence vote by 200 votes to 117
PM pledges to step aside before 2022 election
More than a third of backbenchers turn out against leader
UK Prime Minister Theresa May on Wednesday won a no-confidence vote by 200 votes to 117 after promising she would not lead the party into the 2022 general election.
Speaking outside Downing Street after the vote, May acknowledged that "a significant number of colleagues did cast a vote against me and I have listened to what they said".
"For my part, I have heard what the House of Commons said about the Northern Ireland backstop and, when I go to the European Council tomorrow, I will be seeking legal and political assurances that will assuage the concerns that members of Parliament have on that issue.
The pound rose more than 1.3% against the dollar at $1.264, although it dropped slightly to about $1.260 after the result – finishing about 1% up on the day.
Having been informed overnight of the challenge to her leadership, the prime minister began the day by saying she would contest it "with everything I've got" as rebel Conservative MPs triggered the vote in frustration at her inability to deliver a Brexit deal.
She said a change of leader at this point would not work in the national interest, and, under party rules, would not be completed in time with a legal deadline to put a Brexit proposal to parliament.
Disaffected Tory MPs triggered the ballot after May pulled a vote on the Brexit withdrawal agreement scheduled for Tuesday after she realised that it would be soundly defeated over concerns on the Irish backstop - the insurance policy to stop a hard border with Ireland if a trade agreement cannot be reached with the EU.
PM SAFE - FOR NOW
May is now safe from an internal revolt for a year although it was significant that a more than a third of the parliamentary party voted against her, more than the usual group of 50-60 hard right MPs who favour a no-deal Brexit.
Rebel supporters said the prime minister had been propped up by those on the "payroll" - ministers and aides -- and she would still struggle to command a majority for her deal in parliament.
Despite the result, the adverse parliamentary maths on May's Brexit has not changed, although May has until January 21 to put the deal to the commons.
The EU again stated that there would be no renegotiation, which would mean several scenarios come into play; either a defeat in the commons, an extension of Article 50, halting the Brexit process, a parliamentary vote of no confidence tabled by the opposition Labour Party or a second referendum.
According to a leaked document seen by the Guardian newspaper, European leaders were expected to issue a short statement insisting “the backstop does not represent a desirable outcome” for the EU.
They intended to reiterate the arrangement would only be temporary and Brussels would negotiate and “conclude expeditiously a subsequent agreement that would replace the backstop”, in new language emphasising the need for intensive talks after the contentious arrangement is put into force.
“The union stands ready to examine whether any further assurance can be provided,” the leaders will say, according to the draft document. “Such assurance will not change or contradict the withdrawal agreement.”
BUSINESS GROUPS SCATHING OF TORY SELF OBSESSION
Business leaders were scathing at the Tories' self-obsession with Europe.
Confederation of British Industry director general Carolyn Fairbairn called the day's events "a chaotic detour".
"Politicians must finally stop the endless infighting of the past 30 months and come together to secure a workable Brexit deal. Companies and the country have had enough of chaos.”
British Chambers of Commerce director general Adam Marshall said: "History will not be kind to those who prioritise political advantage over people’s livelihoods."
"At one of the most pivotal moments for the UK economy in decades, it is unacceptable that Westminster politicians have chosen to focus on themselves, rather than on the needs of the country," he said.
"The utter dismay amongst businesses watching events in Westminster cannot be exaggerated. Our firms are worried, investors around the world are baffled and disappointed, and markets are showing serious strain as this political saga goes on and on."