Britain's May faces defeat in parliament over Brexit plan

LONDON - Prime Minister Theresa May faced the prospect of defeat in a historic vote on her Brexit deal in parliament on Tuesday, potentially leaving Britain in limbo about the biggest political and economic change for the country in decades.

A day after May urged lawmakers to take a second look at her plan, parliament looked set to reject it in a voting session due to start at 1900 GMT.

Two-and-a-half months before Britain is due to leave the EU, May's hopes of keeping her plan alive will hinge on the scale of her expected loss.

Avoiding a heavy defeat could give her the chance to ask Brussels for more concessions before attempting to get the plan through parliament in another vote.

But a humiliating outcome could pressure her to delay Britain's scheduled March 29 departure from the EU and potentially open up other options, ranging from a second referendum to leaving the EU with no deal.

One of May's senior ministers, Environment Secretary Michael Gove, called on lawmakers to respect the outcome of the 2016 Brexit referendum decision, or risk undermining democracy.

But many Brexit-supporting lawmakers from May's Conservative Party reject the deal's "backstop" requirement that Northern Ireland stay closely aligned to EU rules to avoid the return of a hard border with EU member Ireland if a broader trade deal cannot be struck.

Dominic Raab, who resigned as May's Brexit minister in November in protest at her plans, said the government should not lose its nerve over the possibility of a no-deal Brexit, something many employers fear would mean chaos for business.

"It's time for us, through this vote, to make clear not just that the current terms are unacceptable, but that we are not just throwing our hands up in the air," he said.

"We are going to leave on March 29."

But investors sense the possibility of a no-deal Brexit is receding, given the concerns of many lawmakers about the upheaval it could bring. Sterling hit a two-month high against the US dollar on Monday and held near that level on Tuesday.