BBC Newsnight’s Political Editor Nicholas Watt says some are doubting whether Britain will leave the bloc
Investor fear and the prospect of a Jeremy Corbyn premiership means Brexit might never actually happen, political sources have claimed.
Speculation is reportedly growing that Britain may never leave the EU due to a combination of factors that make the decision less desirable.
BBC Newsnight’s Political Editor Nicholas Watt told the programme he was beginning to hear talk in some quarters that Brexit may never come to fruition.
“I spoke to one leave supporter who now fears a combination of a stalling economy and investor fear over a possible Corbyn premiership could create a storm that could stall Brexit,” he said.
“I spoke to another person who is familiar with the Brexit process who said to me they think there is a strong chance it may not actually happen.”
However, one source told him he was certain Brexit would happen due to the likelihood of legislation supporting the decision being passed through Parliament.
In pictures: European Parliament Brexit discussions
The European Parliament in Strasbourg, eastern France Getty Images Frank-Walter Steinmeier, President of the Federal Republic of Germany, delivers his speech at the European Parliament in Strasbourg EPA European commission member in charge of Brexit negotiations with Britain, French Michel Barnier listens at the President of the European Commission Jean-Claude Juncker speaking at the European Parliament in Strasbourg Getty Images European Union's chief Brexit negotiator Guy Verhofstadt, President of the Group of the Alliance of Liberals and Democrats for Europe (ALDE), addresses the European Parliament during a debate on Brexit priorities and the upcomming talks on the UK's withdrawal from the EU Reuters Michel Barnier, European Chief Negotiator for Brexit reacts during a meeting at the European Parliament in Strasbourg EPA Member of the European Parliament and former leader of the anti-EU UK Independence Party (UKIP) Nigel Farage wears socks with Union Jack flag at the European Parliament in Strasbourg Getty Images Nigel Farage, United Kingdom Independence Party (UKIP) member and MEP, addresses the European Parliament during a debate on Brexit priorities and the upcoming talks on the UK's withdrawal from the EU Reuters European commission member in charge of Brexit negotiations with Britain, French Michel Barnier gestures during speeches at the European Parliament in Strasbourg Getty The President of the European Commission Jean-Claude Juncker (L) speaks with European commission member in charge of Brexit negotiations with Britain, French Michel Barnier at the European Parliament in Strasbourg Getty European Union's chief Brexit negotiator Guy Verhofstadt, President of the Group of the Alliance of Liberals and Democrats for Europe (ALDE), addresses the European Parliament during a debate on Brexit priorities and the upcomming talks on the UK's withdrawal from the EU Reuters German president Frank-Walter Steinmeier delivers a speech during a plenary session at the European Parliament in Strasbourg Getty Images “I spoke to one Brexiteer who is absolutely confident that Brexit will happen if only for one very simple reason, Labour divisions means the legislation paving the way for Brexit will get through Parliament,” he said.
It comes two weeks after the UK began formal negotiations to leave the EU.
But negotiating terms are proving divisive with the Department of International Trade (DIT), led by Liam Fox, arguing the UK should prioritise trade deals outside the EU.
The department announced last week it will start talks on a US-UK trade deal in Washington on 24 July.
Meanwhile the Chancellor, Philip Hammond, is leading a drive for a lengthy transitional period, hoping to avoid a disastrous “cliff edge” for businesses as a result of leaving with no trade deal.
Officials working for Mr Hammond have written an unpublished paper challenging DIT's argument for non-EU trade.