Britain's Prime Minister, Theresa May,
leaves 10 Downing Street, in central London, Britain June 15, 2017.
REUTERS/Toby Melville
Prime Minister
Theresa May's government said on Thursday it would launch her policy
programme next week, a sign of confidence she will strike a deal to stay
in power after days of political uncertainty since losing her majority.Conservative
Party sources say May wants to show her government is up and running
but her loss of authority in last week's election will make it harder to
handle a hectic agenda - Brexit talks with the EU, tackling a slowing
economy, a political crisis in Ireland, and a devastating fire in
London.
The pound rose after the
Bank of England came its closest in a decade to raising interest rates
to counter higher prices after Britain's vote to leave the European
Union - a move that could further squeeze Britons with big mortgages.
The
London fire, which claimed at least 17 lives, forced the cancellation
of the City of London's Mansion House dinner, where May's finance
minister, Philip Hammond, had the chance to revive calls for a more
business-friendly exit from the EU.
After
touring the wrecked and fire-blackened apartment block and ordering an
inquiry, May returned to talks to try to seal a deal with Northern
Ireland's Democratic Unionist Party to secure the backing of their 10
lawmakers in parliament to help her pass laws and govern as Britain
starts talks to leave the EU.
"The
talks are ongoing, they are very positive, they are constructive. There
is a steady dialogue between the two sides that has never stopped at any
point. It continues and when the deal is done, it will be done," a
senior source in the Conservative Party said on Thursday.
"We never put timescales on when we expect a deal to be done and I'm not going to start now."
UNDER PRESSURE
Her failure to win a majority
has put May under pressure over her Brexit plans from inside and outside
her party and has prompted complaints about her choice of partner due
to the DUP's stance on social issues such as gay marriage.
Colum
Eastwood, leader of the SDLP, Northern Ireland's second-largest Irish
nationalist party, said his party had a "positive" meeting with the
prime minister over her efforts to come up with a deal with the DUP.
"But
we have to be honest, it will take much more than that for us to be
convinced that the DUP tail is not wagging the Tory dog," he told
reporters. "We want to see any deal between those two parties reflect
the wishes of all of the people of Northern Ireland, not just one
section of the community."
Northern
Ireland's largest nationalist party Sinn Fein said it would oppose any
deal that undermines a peace deal known as the Good Friday Agreement,
with President Gerry Adams telling Britain: "We want to govern
ourselves. You folks here make enough mess of your own elections, make
enough mess of your own governments, make enough mess of your own
affairs."
Earlier, Andrea Leadsom,
leader of the lower house of parliament, said the government had agreed
with Queen Elizabeth, who reads out the new government programme, that
the "state opening of parliament will take place on 21 June 2017".
The
start of parliament has been delayed since last Thursday's election, a
gamble May took to strengthen her hand in talks to leave the European
Union but which has left her scrambling for a deal to keep her in power.
Jeremy
Corbyn, leader of Britain's main opposition, said his Labour Party
would not support May's Queen's speech in the lower house of parliament
to try to force her out of power through a vote of no-confidence.
"WE'RE CONFIDENT"
The Conservative source said: "We're confident of getting an agreement, we're confident that the Queen's speech will be passed."
May's
programme will most probably have to be watered down, dropping some of
her preferred reforms to help get legislation through parliament and
possibly having to give way to other ministers who have strong views
over the direction of Brexit.
Before the Mansion House dinner was cancelled
because of the fire, finance minister Hammond had been due to tackle
fears among the financial elite that May's insistence that "no deal is
better than a bad deal" would cost them business.
May's
government has said its Brexit plans remain the same, and her Brexit
minister David Davis will be pressing for close economic ties but a
clear break with the bloc to be able to control immigration and restore
sovereignty over British laws.
The
Conservative source said the talks to leave the European Union would
not be delayed, removing the question mark over the negotiations being
derailed by May's lack of a parliamentary majority lost in an election
she did not need to call.
Davis
plans to go to Brussels on Monday to start the negotiations, which will
reshape not only Britain's role in the world, but also that of a bloc
praised for ensuring peace after World War Two.
But
some opposition politicians say that May can no longer stick to her
stance for a clean break with the EU, characterising her election bid as
a poor gamble that has left Britain a laughing stock.
"Look
at what the Tories (Conservatives) have managed to do to the UK in the
space of just one year, firstly calling a divisive and reckless EU
referendum .. then having lost that gamble pursuing a hard Brexit path,"
Scotland's first minister, Nicola Sturgeon, said.
"And
if that wasn't enough, calling an unnecessary general election purely
for the self interest of the Conservative Party and having mucked that
campaign up they are now putting the country in hock to the DUP."
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