MAS_May_Corbyn_AP_Getty

Prime minister Theresa May’s Conservative party has lost its overall majority while remaining the largest party in a hung parliament, after Jeremy Corbyn’s Labour makes good progress

Key points

  • Theresa May seeks to form a government with support from DUP
  • Tories projected to get 319 seats vs 261 for Labour
  • 326 seats needed for a technical majority
  • Sterling slides 2% against the dollar
  • Big name losers: Lib Dem’s NIck Clegg, SNP’s Alex Salmond and Angus Robertson
  • Ukip leader Nuttall quits
  • Visit our full results page

 

British Prime Minister Theresa May announces snap general election
  • Theresa May calls for a general election for June 8
  • Pound rallies to 10-week high of $1.2671 vs the dollar
  • MPs will vote tomorrow on whether to sanction the election
  • Latest polls give Tory party a 21-point lead over Labour
  • PM says election needed to strengthen UK’s hand in Brexit talks
  • PM said decision made “recently and reluctantly”
  • Visit the FT’s UK General Election poll tracker page here

 

MAS_ASblogillo

Chancellor Philip Hammond is presenting his first Autumn Statement to the House of Commons today, setting out the Conservative government’s plans for taxes, spending and borrowing as the UK prepares for Brexit.

Key points:

 

EU referendum

The Bank of England has increased it forecasts for growth and inflation for this year and next, part of its quarterly update on the economy. It also held interest rates.

Meanwhile the UK government has lost its case in the High Court over whether it can trigger Article 50 without a parliamentary vote, and will now file an appeal to the Supreme Court.

Key developments

  • The BoE now expects inflation to hit 2.7% next year, and stay that high in 2018

  • The Bank unanimously voted to hold hold interest rates

  • The UK government has lost its case on triggering Article 50 in the High Court, and will appeal

  • UK services PMI rises to 54.5 from 52.6 – fastest pace of growth since January

 

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

 

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

 

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 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

 

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

 

George Osborne’s eighth Budget comes at a time of slowing growth and with the government split over Europe. The chancellor needs to show he still has a grip on the public finances, while keeping Conservative backbenchers happy.

Key developments:

  • Economic outlook – growth forecast cut this year from 2.4 per cent to 2 per cent.

  • Public finances – debt to GDP forecast revised up from 81.7 per cent to 82.3 per cent for 2016-17.

  • Government spending – new annual cuts of £3.5bn by 2020.

  • Corporation tax – to fall from 20 per cent at the start of this parliament to 17 per cent by 2020.

  • Sugar tax – new levy on sugary drinks to tackle childhood obesity.

  • Capital gains tax – cut from 28 per cent to 20 per cent.

  • ISAs – limit to rise from £15,000 to £20,000.

  • Tax-free persons tax allowance – raised to £11,500, effecting 31m people

  • Higher rate tax threshold – raised to £45,000

 

The House of Commons has voted to extend air strikes against Isis from Iraq into Syria following a debate that lasted more than 10 hours. Labour party leader Jeremy Corbyn opposed the motion, but more than 60 of his MPs sided with the government given it a majority of 174. The RAF has been conducting airstrikes over Iraq for over a year, as part of a broad US-led coalition.

Key points

  • 397 MPs backed the motion authorising the UK to launch air strikes in Syria; 223 voted against:

  • The amendment to block air strikes was defeated by a majority of 179; 211 For vs 390 Against

  • Air strikes by the RAF in Syria could follow within hours; extra jets will be dispatched to the British base in Cyprus

  • More than 60 MPs look to have defied party leadership to back motion in a free vote

  • Hilary Benn, Labour’s shadow foreign secretary delivers impassioned speech in favour of air strikes

Read more:

By Mark Odell, Josh Noble and John Murray Brown