Eleven years ago Geoffrey Wheatcroft buried the Conservative party.

His book “The Strange Death of Tory England” marked the party’s nadir – but it was out of date shortly after it came off the presses. Just months later the Conservatives elected David Cameron. The rest is history. Read more

I’ve spent some time looking into the business background of Britain’s new chancellor, Philip Hammond. It tells us a lot about his approach to politics. Here’s what I think the public, the City, and the rest of government can expect from the new broom at 11 Downing Street. Read more

Bank Of England Governor Mark Carney Delivers Speech As Bank Pledges Liquidity

The Bank of England has cut interest rates for the first time since 2009, as it calibrates its response to the Brexit vote.

The BoE also boosted its quantitative easing programme, expanding its bond buying to the corporate debt market.

Key points

  • BoE in 25 bps cut, taking benchmark rates to 0.25 per cent

  • BoE will expand QE with an extra £70bn

  • Bank will also extend QE to buy corporate bonds

  • Mark Carney calls Brexit vote a “regime change”, expects unemployment to rise

  • MPC votes 9-0 for rate cut, 6-3 for QE expansion

 

U.K. Prime Minister Theresa May Makes Her First Statement As The Country's New Leader

Theresa May, Britain’s new prime minister, has announced sweeping changes with her first cabinet.

Meanwhile the Bank of England has surprised markets by leaving interest rates on hold. Many had been expecting a cut.

Key appointments

  • Philip Hammond (treasury)
  • Boris Johnson (foreign office)
  • Amber Rudd (home office)
  • Justine Greening (education)
  • Liz Truss (justice)
  • David Davis (Brexit minister)
  • Liam Fox (international trade)
  • Jeremy Hunt (health)
  • Damian Green (work and pensions)
  • Michael Fallon (defence)
  • Chris Graylling (transport)
  • Andrea Leadsom (environment)

Key departures

  • George Osborne (treasury)
  • Michael Gove (justice)
  • Nicky Morgan (education)
  • Stephen Crabb (work and pensions)
  • John Whittingdale (culture)
  • Oliver Letwin (cabinet office)
  • Theresa Villers (Northern Ireland)

 

U.K. Prime Minister Theresa May Makes Her First Statement As The Country's New Leader

Theresa May has taken over as prime minister after David Cameron ended his six-year tenure. She becomes the second female prime minister of the UK 26 years after the first, Margaret Thatcher, resigned.

Mrs May has started to form her cabinet with key appointments announced late on Wedneday.

Key cabinet appointments

  • Philip Hammond becomes chancellor

  • David Davis takes on new role as secretary of state for Brexit

  • Boris Johnson becomes foreign secretary

  • Amber Rudd takes over as home secretary

  • Michael Fallon remains defence secretary

  • Liam Fox is appointed in a new role as international trade secretary

 

Conservative leadership bid

Theresa May will take over as the next British prime minister on Wednesday, incumbent David Cameron has said. The swift handover of power came after her only rival, Andrea Leadsom, pulled out of the race to become the next leader of the rulling Conservative party..

Key points

  • David Cameron says he will offer his formal resignation to the Queen on Wednesday

  • 1922 committee confirms Theresa May as new leader of the Conservative party, making her prime minister-elect

  • Andrea Leadsom withdraws from Tory leadership race, saying period of uncertainty “highly undesirable”

  • Labour’s Angela Eagle begins formal challenge to Jeremy Corbyn’s leadership

  • Lib Dems, Greens call for early general election

 

MAS_threecontenders_20160707155009

Theresa May, the home secretary, and pro-Brexit campaigner Andrea Leadsom, are through to the final two in the race to be the next Conservative leader.

Michael Gove was eliminated in the final round of voting at Westminster.

The two leading candidates will now be presented to 125,000 party members to make the final choice for their new party leader who will replace David Cameron as prime minister

Key points

  • May won the votes of 199 out of 330 Tory MPs in the second round of voting

  • Leadsom came second with 84

  • Gove was eliminated after coming third with 46

  • The result of the members’ ballot is due by September 9

 

Sir John Chilcot Delivers The Iraq Inquiry Report

Sir John Chilcot has released his long-awaited report on the UK involvement in the Iraq war, which has led to more than 500,000 civilian deaths in the country.

Sir John said the UK government “chose to join the invasion of Iraq before the peaceful options of disarmament had been exhausted” and “military action at that time was not a last resort”.

Prime minister David Cameron tells MPs that the report is not “accusing anyone of deliberate explicit deceit” while Jeremy Corbyn, the Labour leader, formally apologises on behalf of the Labour Party for taking the country to war.

Former Prime Minister Tony Blair said he stood by his decision to back an invasion and that the report “should lay to rest allegations of bad faith, lies or deceit.”

Key findings

  • Blair committed to an invasion almost eight months before receiving parliamentary and legal backing

  • The invasion was based on “flawed intelligence and assessments” that went unchallenged

  • The UK was “undermining” the UN Security Council’s authority in the absence of majority support for military action.

  • The inquiry did not express a view on whether military action was legal but concluded “the circumstances in which it was decided that there was a legal basis for UK military action were far from satisfactory”.

 

Britain's Justice Secretary, Michael Gove, delivers his speech after announcing his bid to become Conservative Party leader, in London

The race to be the next prime minister is now in full swing. Michael Gove has launched his campaign to become the next Prime Minister argued that only someone who had campaigned for Brexit should lead the Conservative party; the frontrunner Theresa May campaigned on the Remain side.

Sterling remains lower following Bank of England governor Mark Carney’s comments that the UK was suffering “post-traumatic stress” and the central bank is likely to have to ease policy in the coming months.

As policymakers scramble to respond to the economic shock of the vote to leave, Chancellor George Osborne said that he is dropping his long-held goal of reaching a surplus in the UK’s public finances by the end of the decade.

Key points

  • Michael Gove sets out his bid for Tory party leadership, focus on change and reform

  • Labour leader Jeremy Corbyn could face a leadership challenge

  • George Osborne abandons his 2020 public finance surplus target

  • FTSE 100 enjoys best week since Dec ’11

 

Britain's Home Secretary Theresa May attends a press conference in London

Boris Johnson will not be running to replace David Cameron, but Michael Gove will. He’ll face new favourite home secretary Theresa May – and a handful of others.

Key points

  • Boris Johnson pulls out of the race for Tory party leadership

  • Michael Gove launched surprise run

  • May, Leadsom, Fox and Crabb launch candidacy

  • Bank of England governor hints at more monetary easing, warning of a “materially slower” growth

  • FTSE 100 closes at highest since Aug 2015; Gilt yields fall negative for first time ever

 

EU summit after British referendum to leave bloc

European leaders met today to discuss the UK’s fate after it voted to leave the EU. The British prime minister, however, was not among them.

Back home the attention was on the twin battles to lead the country’s major political parties.

Key points

  • David Cameron called on Jeremy Corbyn to step down as Labour leader “for the national interest”

  • François Hollande said London should lose the right to clear euro-denominated trades

  • Liam Fox threw his hat into the ring in the Tory leadership contest; Tom Watson said that he would not enter a Labour contest

  • Stephen Crabb launched bid for Tory party leadership

  • The FTSE 100 recovered all post-Brexit losses

  • Sterling was steady at $1.35

 

EU Council meeting after British referendum to leave the EU

David Cameron is at his final EU summit in Brussels today, where he vowed that the UK would not turn its back on its European allies.

But while German leader Angela Merkel wants to ensure the UK is given time to decide how to exit, the European Parliament is pushing for a swift end to uncertainty.

Back in the UK, despite overwhelmingly losing a vote of no-confidence from his fellow Labour MPs, Jeremy Corbyn has refused to step down as leader of the opposition.

Key points

  • The Tory leadership battle is underway, with Johnson and May the frontrunners. Work and pensions secretary Stephen Crabb is also in the frame.

  • George Osborne warns of “prolonged economic adjustment”, says spending cuts and tax hikes needed

  • Sterling edges back after hitting a 30-year low on Monday, stocks bounce

  • Jeremy Corbyn has lost a vote of no confidence vote from his fellow Labour MPs

  • S&P downgrades the UK two notches, stripping the country of its final AAA rating

  • Nicola Sturgeon has launches a diplomatic drive to secure Scotland’s post-Brexit place in the EU

You can read yesterday’s coverage here.

 

Getty

After a weekend of political ructions in both main parties, focus in the UK today has switched back to the economy and the business impact of last week’s vote. UK stocks are down, the pound is at a new 30-year low, while 10-year Gilt yields have broken below 1% for the first time.

But we have also seen a number of fresh developments inside the Labour party, where an attempt is underway to unseat leader Jeremy Corbyn.

Key points

  • Markets are rattled – with the FTSE 100 down 2.6 per cent, the FTSE 250 off 7.0 per cent, and the pound has weakened more than 3 per cent against the dollar to fall below $1.32 and set a new post-1980s low in today’s trading.

  • George Osborne, speaking for the first time since Thursday’s vote says government ‘must deliver’ on the result

  • Boris Johnson, who hopes to replace Mr Cameron, has backed BoE governor Mark Carney, and vowed to keep UK in the single market

  • David Cameron has given his first statement to the Commons since the vote to leave the EU. He ruled out holding a second referendum and made it clear any decisions on Britain’s future relationship with the Union would be an issue for his successor. Boris Johnson was not there.

  • The bloodletting in the Labour party has continued, with dozens of shadow cabinet members resigning

You can catch up on what happened yesterday here.

 

EU referendum

The UK political fallout from the historic vote to leave the EU is gathering pace, with the Labour shadow cabinet disintegrating and key Conservative figures preparing for a leadership contest.

In Berlin, the German chancellor Angela Merkel has attempted to rein in pressure from within Europe to force Britain quickly to trigger divorce proceedings with the EU, saying that rushing into an exit was unwarranted.

Key things to watch

  • UK political establishment in upheaval after Brexit vote

  • Mass resignations from Labour shadow cabinet

  • Michael Gove to back Boris Johnson for Tory leadership

  • First minister suggests Scotland could block Brexit legislation

  • Asset managers prepare to move staff out of London

 

EU referendum

The European political establishment has begun formulating its response to the UK’s historic decision to leave the EU, putting on a show of unity at a hastily arranged meeting of foreign ministers in Berlin.

Global markets lose $2tn of value in Friday’s trading – the single biggest one-day loss since 2007 – and are set for further volatility at the start of next week.

Key things to watch

  • “Core Europe” urges Britain to trigger exit talks through Article 50 immediately

  • French foreign minister calls for new UK PM in ‘coming days’

  • Merkel says formal talks should not “take forever”

  • UK commissioner Jonathan Hill resigns from post

  • ECB official: City will lose vital passporting rights outside single market

  • Sturgeon: second Scottish independence referendum process has begun

By Mehreen Khan and David Bond

 

Getty

The UK has voted to leave the EU after a bitter and divisive campaign.

Prime Minister David Cameron has said he will resign by the time of the Conservative party conference in October.

Boris Johnson has said that the British people “have spoken up for democracy”. The EU was “a noble idea for its time,” he said. “It is no longer
right for this country.”.

Financial markets across the world are down sharply. Sterling has plummeted and banking stocks are taking a heavy beating in early trading.

Bank of England govenor Mark Carney has said they “will not hesitate to take any additional measures” to ensure monetary and financial stability.

First Minister of Scotland Nicola Sturgeon has she will begin to prepare the legislation for a new vote on Scottish independence.

View the referendum night live blog

Key points

  • It is a Leave victory – see our interactive results page
  • Most of the country has turned against the EU with only London, Scotland and Northern Ireland delivering big wins for Remain.
  • Turnout was 72%, with 16,141,241 cast in favour of Remain and 17,410,742 in favour of Leave
  • Prime Minister David Cameron has said he will resign and that the new PM should be the one to decide when to trigger Article 50.
  • The financial markets are in turmoil, sterling has fallen dramatically and volatility is hitting other major currencies. The Euro is suffering its worst day ever against the dollar. Banking stocks are particularly hard hit.
  • The Bank of England has said it will “take all necessary steps to meet its responsibilities for monetary and financial stability.” Both the BoE and the ECB has said it is ready to provide additional liquidity if needed
  • Leave campaigners Boris Johnson and Michael Gove have said informal negotiations will now start on the exit.
  • Nicola Sturgeon confirms preparations for a new Scottish independence referendum

 

MAS_Cameron_Grab

Vist the current political and market fallout live blog

The UK has voted to leave the EU after a bitter and divisive campaign.

Prime Minister David Cameron has said he will resign by the time of the Conservative party conference in October.

Boris Johnson has said that the British people “have spoken up for democracy”. The EU was “a noble idea for its time,” he said. “It is no longer
right for this country.”.

Financial markets across the world are down sharply. Sterling has plummeted and banking stocks are taking a heavy beating in early trading.

Bank of England govenor Mark Carney has said they “will not hesitate to take any additional measures” to ensure monetary and financial stability.

First Minister of Scotland Nicola Sturgeon has she will begin to prepare the legislation for a new vote on Scottish independence

Key points

  • It is a Leave victory – see our interactive results page
  • Most of the country has turned against the EU with only London, Scotland and Northern Ireland delivering big wins for Remain.
  • Turnout was 72.%, with 16,141,241 cast in favour of Remain and 17,410,742 in favour of Leave
  • Prime Minister David Cameron has said he will resign and that the new PM should be the one to decide when to trigger Article 50.
  • The financial markets are in turmoil, sterling has fallen dramatically and volatility is hitting other major currencies. The Euro is suffering its worst day ever against the dollar. Banking stocks are particularly hard hit.
  • The Bank of England has said it will “take all necessary steps to meet its responsibilities for monetary and financial stability.” Both the BoE and the ECB has said it is ready to provide additional liquidity if needed
  • Leave campaigners Boris Johnson and Michael Gove have said informal negotiations will now start on the exit.
  • Nicola Sturgeon confirms preparations for a new Scottish independence referendum

 

U.K. Voters Head To The Polls In The EU Referendum

It’s decision day. Britain is voting on whether to leave the European Union after a bitter and divisive campaign.

With the result too close to call, turnout is likely to be crucial. The Remain and Leave camps are pulling out the stops to ensure the maximum number of their supporters actually vote.

The referendum has pitted old against young, towns against cities, and split political parties. So all eyes will be on early returns in the north and later London.

We will be updating this live blog throughout the night, with the results possible in early Friday morning. You can also follow us on our Twitter account @FT.

Key points

  • Polls are open from 7am to 10pm
  • A record 46,499,537 people are entitled to vote
  • Initial indications from around the country are of high turnout, with many polling stations reporting queues
  • FT poll of opinion polls on Wednesday night put Remain fractionally ahead at 47% versus 45% for Leave
  • Sterling earlier hit its highest level this year, before retreating. Markets are braced for major fluctuations in the currency overnight given thin trading conditions
  • Official statistics released on the morning of the vote show that the nation’s population has hit 65 million

 

Political journalists have become exceedingly wary of pollsters since they called last year’s general election wrongly. Are they right to be? The performance of major polling companies in this referendum could make or break their reputations – get it wrong again and the fury of Fleet Street will be unconstrained.

But there’s good reason to feel that hacks should have learned some lessons too – the first being, properly understand what it is that you are reporting. Here are a handful of key points to bear in mind when in the coming days we consider the pollsters’ performance in this referendum. Read more

A screengrab taken from UK Parliaments P

Sir Philip Green faced MPs to give his account of what happened when he sold BHS last year to a consortium led by Dominic Chappell, an ex-bankrupt, who by his own admission knew nothing about retailing. The retailer went into administration earlier this year leaving future of its 11,000 staff in doubt and many of the 20,000 members of its pension scheme facing cuts to their retirement with the fund in need of a bailout estimated at £275m.

The flamboyant businessman’s appears in front of the parliamentary committee that last week heard a flavour of the internal feuding between management and new owners, including allegations a death threat was made against the chief executive and there plans to hive off assets before the retailer collapsed.

Key developments

  • Sir Philip said there is a plan “in motion” to resolve the BHS pension deficit

  • In a heated session, the retail entrepreneur avoided answering quite a lot of the detailed questions

  • But he does admit “unfortunately” he sold BHS “to the wrong guy.”

  • On several occasions during a near 6-hour hearing he accuses MPs on the committee of “bullying” him

  • He denies blocking a potential rescue bid by SportsDirect just before BHS collapsed

  • He hits out suggestions he was involved in tax avoidance and points out he and his companies have paid “hundreds of millions” in tax

By Mark Odell, Lauren Fedor, John Murray Brown and Lucinda Elliott