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.
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
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.
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.
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
- 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
A vote for Brexit is likely to cost jobs, raise prices and see the pound fall sharply, the Bank of England has warned in its quarterly inflation report on Thursday in its most outspoken comments to date on the consequences of the EU referendum. For once the Bank of England’s quarterly inflation report is not about the forecast or the outlook for interest rates – which have been kept on hold – it is about the tone Governor Mark Carney takes today as he presents the central bank’s latest update.
By Emily Cadman and Mark Odell
Carney warns Brexit “could possibly” lead to a “technical recession”
Carney says the Bank “did not develop a full projection” for a Leave vote
Governor refuses to be drawn on any potential upside of Brexit
What does the Bank of England think about the risks – or opportunities – of a vote to leave the European Union? On Tuesday, its top officials will face a grilling from MPs on the Treasury Select Committee on the topic.
BoE officials have spent months trying not to be drawn into the issue but in nearly three hours of questions ahead, govenor Mark Carney was repeatedly put on the spot. The Treasury Select Committee is also sharply divided between committed outers and inners who were all keen for material to support their campaign. Appearing are BoE governor Mark Carney and deputy governor for financial stability Jon Cunliffe.
- Mr Carney says the BoE will not be making a recommendation as to which way to vote: “We will not be making, and nothing we say should be interpreted as making, any recommendation with respect to that decision.”
- But in its written submission the BoE says that the settlement reached by David Cameron “addresses the issues the Bank identified as being important”.
- He also categorizes Brexit as the “biggest domestic risk to financial stability”
- BoE is not forecasting the impact of Brexit on either jobs or prices, Mr Carney says
- There would “without question” be a loss of business in the City of London if the was to leave and can not negotiate mutual recognition to replace the current EU bank passport
- Mr Carney refutes any suggestion he has been leaned on by the government to give a pro-EU view. “My signature is on the letter, these are my views”.
- In a sharp exchange, Eurosceptic MP Jacob Rees-Mogg accuses Mr Carney of pushing pro-EU arguments. Mr Carney says he will not let that stand.
By Chris Giles, Economics Editor and Emily Cadman, Economics Reporter
(c) PA Mr Thompson giving evidence
Senior BBC figures are appearing before MPs on the Public Accounts Select Committee facing questions about pay offs given to departing executives. Former director general Mark Thompson has accused the trust which oversees the BBC of “fundamentally misleading” Parliament over severance payments at an earlier hearing.
Also set to appear are Marcus Agius, former chairman of the BBC Executive Board Remuneration Committee, Lord Patten, chairman, BBC Trust, Anthony Fry, BBC Trustee, Sir Michael Lyons, former trust chairman, Lucy Adams, BBC HR director, and Nicholas Kroll, a director of the BBC Trust
By Lina Saigol and Emily Cadman