Labour leader Jeremy Corbyn tabled a motion of no confidence in Mrs May’s government as he declared the Brexit vote was a ‘catastrophic’ defeat and the greatest loss for a government since the 1920s.
Overall, the EU Withdrawal Agreement was rejected by 432 votes to 202.
Some 118 Tory MPs voted against their own government as Guernsey-based venture capitalist Jon Moulton suggested the chances of a delay to Brexit had risen ‘sharply’.
The UK is due to leave the European Union on 29 March.
The no confidence motion will be debated by MPs today after Mrs May challenged Mr Corbyn to table it, suggesting she was confident that she could win the vote.
However, concerns have been raised that a left-wing Corbyn government more unfriendly to Guernsey, and its finance sector, could yet emerge – although estate agents said it could boost the open market by encouraging wealthy Brits to move here.
Amid the Brexit chaos engulfing the UK, the chair of the Guernsey branch of the Institute of Directors sounded a reassuring note about the potential impact on the island.
‘In these times of uncertainty, it’s good to know that Guernsey has been on the front foot in terms of preparations for all different scenarios in a way that was positively commented on by Allie Renison [head of Europe and Trade Policy at the IoD] in her recent visit to the island,’ said John Clacy.
‘The island’s stability and clear route to EU markets are likely to prove of great benefit to the UK as it navigates through this very difficult time.’
Jonathan Le Tocq, Policy & Resources member with responsibility for external affairs, said: ‘The point remains that we have been preparing for all probable scenarios for several years now, including before the referendum.
‘A no-deal looks very much where the UK is headed now on March 29, bearing in mind what might happen over the next few days.’
Deputy Le Tocq added that the island’s civil contingencies authority had been working for many months practically on what Guernsey could do to ensure supplies reached the island effectively and efficiently, unlike other parts of the UK which might be more affected.
‘We are looking to ensure we have all the possible routes to ensure we continue to have food and medicine,’ he said.
Deputy Le Tocq also said that details on the island’s preparations would be communicated to business and the public in ‘due course and in an appropriate way’.
Preparations have included activity around securing a customs union with the UK, moving to protect citizens’ rights as well as the Common Travel Area between the Crown Dependencies, UK and Ireland. Work has also been undertaken in relation to driving licences, MOTs, data, fisheries and territorial waters.
The extraordinary scenes in parliament drew comment from other local politicians.
Economic Development president Charles Parkinson, posting on Twitter, said: ‘The slow-motion car crash happening at Westminster today will rank alongside Suez as one of the greatest of British post-war debacles.’
Meanwhile, Guernsey-based venture capitalist Jon Moulton said: ‘The risk of delay of Brexit had risen sharply with a three-month delay probably to get in reasonably order, even for a relatively hard Brexit. But it might be even longer.’
Mrs May would probably survive the confidence vote and still be in office at the end of today, he added, although that could depend on the reaction from within Tory ranks.
Elaine Gray, a partner at law firm Carey Olsen, said that the potential impact on Guernsey should become clearer by Monday – which is when Mrs May will be required to come back with alternative Brexit proposals to parliament.
‘It’s a bit like going to a trial and having a face-off. You have to see the whites of their eyes and people peer over the precipice before you get a deal,’ she added, with the situation force MPs to try and develop a cross-party solution and take that to the EU.
Advocate Gray also said that some short-term disruption was possible but would not be as ‘cataclysmic’ as some had suggested, particularly as the island’s finance sector was strong and developing new markets.
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