Pound nosedives after Government told to publish full legal advice on Brexit

The pound nosedived this evening after the Government said it will publish full legal advice on Prime Minister Theresa May’s Brexit deal after MPs found it in contempt of Parliament for not doing so.

In a humiliating and historic defeat the Commons voted by 311 to 293 to hold ministers in contempt of Parliament – the first time ever this has happened.

Soon after the vote the pound crashed to its lowest since June 2017, falling by 0.5% against the dollar to $1.2659 before rallying slightly.

Labour joined with the DUP, SNP and Lib Dems to pass the motion in what Labour's shadow Brexit secretary Sir Keir Starmer said was an ‘unprecedented’ act.

The Government ran the risk that ministers could be suspended from the Commons if they continued to refuse.

It is a hammerblow for May who next week faces the biggest political test of her career when MPs will vote on her Brexit deal in the Commons.

Commons Leader Andrea Leadsom told MPs: 'We have tested the opinion of the House twice on this very serious subject...We will publish the final and full advice provided by the Attorney General to Cabinet.'

Commons Speaker John Bercow said it was "unimaginable" MPs would not now get to see the information before they decided whether to accept or reject the agreement with the EU.

Earlier in the day the pound had surged as traders seized on comments from a top European Court of Justice official that the UK could unilaterally change its mind on Brexit.

The ECJ’s advocate-general Manuel Campos Sanchez-Bordona told the court any potential decision by the British Government to U-turn on invoking Article 50 would be lawful.

Advice from the advocate-general does not have the status of a ruling, but the full court follows his opinion in around 80% of cases.

Sanchez-Bordona said Article 50 “allows the unilateral revocation of the notification of the intention to withdraw from the EU”.

Jo Maugham, one of the pro-Remain QCs who brought the case, said the opinion “puts the decision about our future back into the hands of our own elected representatives”.

The European Commission has called for additional unanimous agreement of the remaining 27 members.