Corbyn Threatens Early Vote to Topple Johnson: Brexit Update

(Bloomberg) -- Boris Johnson will face an "early" vote of no-confidence in his government, which could oust the U.K.'s new prime minister and force fresh elections, opposition Labour Party Leader Jeremy Corbyn said. Johnson, meanwhile, has said he doesn't want to call a snap election.

Key Developments:

Johnson announced 1.8 billion pound ($2.2 billion) boost for the NHS
Hancock said there shouldn't be an early general election; he also promised an “unhindered” supply of medical supplies after Brexit
Johnson is preparing a “people versus the politicians” general election campaign after Brexit, Financial Times reported
Pound pares losses of as much as 0.5%; yield on U.K. government bonds reaches record low
Germany doesn't think Johnson can pursue no-deal, as officials expect Parliament to block him

EU Officials Reject Johnson's Demand to Re-Open Deal (4 p.m.)

The U.K.'s 27 EU partners showed no sign of giving in to Johnson's demands for a new exit agreement when officials met in Brussels to discuss the state of play on Brexit talks on Monday. Representatives from member states reaffirmed their position that the Brexit agreement can't be re-opened, according to a person familiar with the discussion.

The officials also confirmed there would be room to amend the non-binding political declaration on future U.K.-EU ties, according to the person, who asked not to be named because the discussion was private. The meeting was a useful chance to reinforce the bloc's position in light of Johnson's harder tone on leaving the EU without a deal, the person said.

Johnson: Another Election Is ‘Last Thing' I want (3 p.m.)

The premier has said he doesn't want to call another election, which isn't quite the same thing as ruling one out. Speaking during a visit to a hospital to promote his health spending pledge, Johnson said voters had had enough of voting.

"The people of the UK voted in the election in 2015, they had a referendum in 2016 and another election in 2017," he said. "They want us to deliver what they asked for- and that is for us to leave the EU. The last thing I want to do is call another election."

The question is whether Johnson's government -- with a working majority of just one member of Parliament -- can survive for long without another national poll.

Corbyn Pledges ‘Early' Confidence Vote (2:20 p.m.)

Jeremy Corbyn, leader of the opposition Labour Party, said he will call for a vote of no confidence in the Government when Parliament returns from summer recess in a bid to block a no-deal Brexit.

Labour will call the vote at an "appropriate very early time,” Corbyn told the Press Association in an interview. He said he would do everything he can to stop a no deal exit from the EU.

“The Prime Minister seems to be trying to slip no-deal through, slip past Parliament and slip past the British people,” he said. “No-deal will be really serious. Serious for food prices, for medical supplies, for trade, for investment, and drive us straight into the hands of the sort of trade deal that Donald Trump wants to do with Boris Johnson.”

“There will be a no-confidence motion put at a point when we can win it and a point when we can make sure this Government is not allowed to take this country out of the union with no deal.”

Johnson: NHS Boost Is ‘New Money' (12:35 p.m.)

Prime Minister Boris Johnson told Sky News his 1.8 billion pound cash boost for the National Health Service represents “new money,” during a visit to Lincolnshire on Monday. The money will be used to reduce waiting times, he said.

“It's also vital we have a strong economy, he said.

Brexit Will Definitely Happen Oct. 31: Slack (12:30 p.m.)

Brexit will happen on Oct. 31 “whatever the circumstances,” Prime Minister Boris Johnson's spokesman told reporters, declining to comment on whether the government would respect a vote in Parliament seeking to rule out a no-deal split from the European Union.

Spokesman James Slack also wouldn't comment on whether Brexit could happen during a general election campaign, calling the issue hypothetical. The question derives from a Telegraph newspaper report that Johnson's senior adviser, Dominic Cummings, told ministers an election date could be set for after the Oct. 31 Brexit deadline if the government lost a confidence vote in Parliament beforehand.

The government's priority is to secure a Brexit deal with the EU, while ensuring the U.K. is prepared to leave the bloc without one, Slack said.

Bond Markets React to Election Risk (10:30 a.m.)

U.K. government bonds rallied, driving benchmark yields to a record low as global risk sentiment worsened and amid growing speculation Johnson is preparing for a general election.

Ten-year gilt yields slipped below 0.5% for the first time, while the pound also fell as much as 0.5% on Monday.

Scotland Would Vote for Independence, Poll Shows (10 a.m.)

Scotland would choose to become independent of the U.K. if given a chance to revisit their 2014 referendum question, polling by Conservative peer Michael Ashcroft showed on Monday. It's the first time in two years Scots support independence, he said.

Excluding those who said they wouldn't vote or didn't know, 52% of Scots would choose to secede from the U.K., with 48% opting to stay in the union. That compares with the 55% who opposed independence in the 2014 plebiscite.

The poll illustrates the divisions caused by Brexit and follows Johnson's push to leave the European Union on Oct. 31, even without a deal. Ashcroft's polling showed 59% of Scots who voted to remain in the EU would choose to leave the U.K.

Hancock: U.K. Doesn't Need Snap Election (Earlier)

Health Secretary Matt Hancock said he doesn't think there should be an early general election, responding to mounting speculation the government is preparing for one.

“I don't want one, I don't think we need one,” Hancock told BBC radio on Monday. “We've got to deliver on the result of the referendum and I think the best way to do that is with a deal.”

Speaking to ITV earlier, Hancock also promised the government is doing whatever necessary to ensure an “unhindered supply of medicines whatever the Brexit scenario.”