Liam Fox eliminated after trailing in fifth place
Jeremy Corbyn’s shadow cabinet agrees to Labour peace talks
Archbishop says Brexit vote has led to ‘out-welling of poison and hatred’
Ken Clarke says May ‘bloody difficult’, Gove ‘wild’ and Leadsom’s views ‘extremely stupid’
Sturgeon says May’s stance on EU nationals ‘disgraceful’
Carney says ‘some market and economic volatility’ expected after Brexit
9.28pm BST
• Theresa May stormed ahead in the race to become the next prime minister, winning the backing of half of all Conservative MPs in a first round contest that saw Stephen Crabb drop out of the race and endorse her after he slipped into fourth place.
The home secretary won the support of 165 MPs while Andrea Leadsom, the energy minister, came second in the contest with 66, beating the justice secretary, Michael Gove, into third place on 48. Fifth-place finisher Liam Fox, on 16 votes, was eliminated.
Just over an hour after the result was declared, Crabb said he was offering May his “wholehearted support”, arguing that her ability to secure the backing of 165 MPs showed that she was the only candidate who had any hope of unifying the party and country.
• Ken Clarke has been caught on camera describing Theresa May as a “bloody difficult woman” and predicting that Michael Gove as prime minister would go to war with three countries at once, as he made a series of unguarded remarks about the Conservative leadership candidates.
The veteran Tory, who has served in five cabinet roles including home secretary and chancellor, made disobliging comments about each of the candidates in turn after giving a television interview to Sky
9.21pm BST
Jeremy Corbyn’s shadow cabinet has agreed to begin formal peace negotiations between the warring factions of the Labour party to try to prevent all-out war.
The Guardian’s political team report:
Len McCluskey, the general secretary of the Unite union, met Corbyn and his deputy leader, Tom Watson, on Tuesday in what some Corbyn loyalists hope will be the first step towards a brokered deal – involving MPs, unions and the party’s national executive committee – that could ensure a dignified exit for the embattled leader.
One source involved in the discussions said the process could result in Corbyn stepping aside before a 2020 general election, but that there could be no pre-conditions.
9.18pm BST
Michael Gove has been giving his reaction to those comments earlier today from Ken Clarke, who was apparently caught on camera warning that the UK would quickly be at war with ‘at least three countries’ if the Justice Secretary became prime minister.
Faisal Islam interviewed Gove for Sky News and has been tweeting some of the highlights:
Gove on Clarke comment "Ken is Ken, and one of the things I absolutely believe in is a strong defence, but we should be careful and prudent"
AAA lost? Gove: "Of course there has been an impact and the world is looking afresh at the challenges and the opportunities"
9.15pm BST
Theresa May has published her tax returns for the past four years now, leaving the ball in the court of Andrea Leadsom, the only remaining Tory leadership candidate not to do so.
On Sunday night the business minister Leadsom refused to publish her tax details, saying she only plans to do so if she becomes one of the final two candidates whose names are put before the party’s members.
9.10pm BST
Diane Abbott, Labour’s new shadow secretary of state for health, has said that the current turmoil in the party over Jeremy Corbyn’s leadership “is about party membership versus MPs.”
I didn’t get chance to post what she said earlier in an interview on Sky News. She rejected suggestions that the new Labour shadow cabinet, with a number of members doing more than one job, was an “embarrassment” telling the channel: “you are obsesses with what is happening in Westminster.
9.02pm BST
Speaking alongside Lewis, Green MP Caroline Lucas called for an electoral pact between Labour, the Liberal Democrats, the Greens and Plaid Cymru.
The former Green party leader - who is again running for the party’s leadership on a joint ticket - said that a progressive electoral alliance should be formed with a commitment to proportional representation, reports Harrison Jones for the Guardian.
Big applause for @CarolineLucas She calls for electoral reform #ProgressiveAlliance pic.twitter.com/vop3Fq8abG
8.57pm BST
The Labour Party is fighting for its survival and faces losing out to Ukip in areas that backed leaving the European Union, the shadow defence minister Clive Lewis has admitted.
The Guardian’s Matt Weaver was listening to Lewis speak earlier alongside Green party MP Caroline Lucas at a Compass event on the progressive response to Brexit and reports
Lewis who was promoted to Labour’s front bench after last week’s coup against Jeremy Corbyn, has been put forward by some as a potential new leader to resolve the current impasse.
He said: “The current crisis with the Parliamentary Labour Party is not some ego-led squabble between wantabe leaders, it is the expression of a much deeper crisis within the Labour party and its relationship with its voters.”
'This shit just got real' @labourlewis tells @CompassOffice live event
8.51pm BST
Stephen Crabb has warned that the Conservative Party risking being split if those within it persist in labelling each other either as remainers or leavers.
In a thinly veiled swipe at Andrea Leadsom’s camp, which has recently been attacking Theresa May over her support for the remain side during the referendum campaign, Crabb said that people should avoid creating what he called “a new litmus test.”
8.40pm BST
Michael Gove has given his response to the results of the Tory leadership ballot, in which he finished third. Trying again to carve out a unique selling point for himself, he emphasises his status as a Brexiteer (unlike May) and as someone with experience at the “highest levels of government” (unlike Leadsom).
He said:
I am delighted by the support I have received from colleagues. It reflects the optimistic message that I’ve been putting forward.
Now that Britain has voted to leave, I think the country deserves to have a leader who believes in Britain outside the European Union and who also has experience at the highest level of government.
8.28pm BST
Liam Fox has said that he is backing Theresa May, which he says will be a “very fine prime minister.”
“In this leadership election we have nine weeks before the candidate who is successful becomes the prime minister. It is essential that they have an understanding of the top levels of government, international affairs and how the process in Whitehall operates,” he told reporters outside Westminster in the last ten minutes.
8.15pm BST
Crabb said that he spoke earlier to Theresa May and was now giving her his “wholehearted” support.
Asked on BBC if he had asked for anything from May, he replied: “I asked for nothing from Theresa. She asked for nothing from me. That’s not the way we work.”
8.08pm BST
Stephen Crabb has dropped out of the Tory leadership race following the results of the first round of voting. He’s backing Theresa May.
The secretary of state for work and pensions had been considering his position after finishing second last (with 34 voters) in voting, which saw Liam Fox eliminated earlier.
7.41pm BST
Full details of the new Labour shadow cabinet have been released by the party and it’s a list which reveals the extent of its divisions.
A number of members are doing two jobs each, while there does not seem to be an attorney general yet. Among the notable changes, the shadow business secretary post goes to Jon Trickett, a key ally of Jeremy Corbyn, while there’s no change in the position of Jon Ashworth, an ally of deputy leader Tom Watson. It means that Ashworth retains his seat on Labour’s national executive committee (NEC).
7.19pm BST
This is from Newsnight’s Nicholas Watt.
Team @andrealeadsom say @Gove2016 had 30 MPs - extra 18 lent by @TheresaMay2016 who prefers him in final round. Denied by Team May
7.13pm BST
Liam Fox has put out a statement about the result.
Here is an excerpt.
I have also sought to stress the need for experience as the successful candidate will have to take up the reins of government in less than 9 weeks.
Liam Fox statement pic.twitter.com/1mMYQ1Jl6L
Liam Fox is a regular dining partner of Theresa May. Very likely that he will now back her.
7.05pm BST
These are from the Evening Standard’s Joe Murphy.
Gove is 18 behind Leadsom - and Fox only has 16. The maths look difficult for him.
Fox out - and not much point in Gove or Crabb staying in the race. Do we need a thursday ballot?
@jamesmatesitv Gove needs to pick off Leadsom supporters. But May has enough spare votes to keep Leadsom ahead of him if she wishes
7.00pm BST
This is from ITV’s Alastair Stewart.
#ToryLeadership Former 'Remain' campaigners 199; former 'Leave' campaigners 130.
6.56pm BST
Here is ConservativeHome’s Paul Goodman on the result.
+ @TheresaMay2016 on half the vote. Looks like she's the one that Tory MPs want. Big implications.
On these figures, @Gove2016 could just make the final two if he scoops up enough of @LiamFoxMP's and later @CrabbForBritain's votes.
Could be wrong - but smell some tactical voting for Gove here by @theresamay2016 provisional wing.
6.54pm BST
This is from ITV’s Adrian Masters.
A Conservative MP suggested to me earlier that most, if not all, Crabb supporters wd back Theresa May if he were to withdraw from the race
6.54pm BST
This is from BuzzFeed’s Jim Waterson.
Leadsom supporters terrified other MPs (ie May supporters) will now move to stop her reaching the final two by voting tactically for Gove.
6.52pm BST
This is from the BBC’s Laura Kuenssberg.
Leadsom's team still buoyant, they believe govt whips been colluding to stop her
6.49pm BST
This is from Newsnight’s Nicholas Watt.
After @andrealeadsom 2nd place @PennyMordauntMP tells me: the momentum is with Andrea, a contest between her and @TheresaMay2016 exciting
Team @andrealeadsom thought they had 65 votes in the bag. Went one better to 66
6.47pm BST
Here is Theresa May’s statement on the result.
I am pleased with this result, and very grateful to my colleagues for their support today.
There is a big job before us: to unite our party and the country, to negotiate the best possible deal as we leave the EU, and to make Britain work for everyone.
6.46pm BST
Here are some snap observations on the result.
1) Theresa May’s lead is so big as to raise questions about how viable it would be to elect anyone else as leader. She has won the backing of 50% of Tory MPs, and is bound to pick up more support as the voting goes on. (For example, we heard Ken Clarke say today that he would vote for Stephen Crabb before switching to May.)
6.31pm BST
Here are the results. Theresa May has won the backing of 50% of Tory MPs.
Liam Fox drops out.
6.28pm BST
Expect an announcement in c10 mins. This is only to eliminate one contender today, almost certainly Fox, but others may withdraw if do badly
6.28pm BST
So @TheresaMay2016 poised to get the highest first ballot total of Tory MPs since Major in '95 - really Major 1990 pic.twitter.com/u9TH6NR9Rg
6.27pm BST
Only two cabinet ministers here so far for #ToryLeadership announcement (Rudd, Morgan). How many of these backbenchers will enter cabinet?
6.27pm BST
None of the candidates in Ctte Rm 6 for Graham Brady announcement of 1st round Tory leadership ballot result but plenty of their supporters.
6.27pm BST
Tory leadership campaign teams have been called in to hear the result of the first ballot. Tory MPs waiting outside
6.25pm BST
Here is the ConservativeHome tally of how many MPs have declared publicly for each candidate.
Our updated tally of Leadership Race endorsements:
May 140
Leadsom 42
Gove 27
Crabb 22
Fox 7 https://t.co/mCYnELu8kL
6.24pm BST
Nicky Morgan has arrived for Michael Gove. IDS and @PennyMordauntMP are here for team Leadsom. #yplive
6.19pm BST
In the Liverpool Committee room with members of the press and Tory MPs waiting for the result of 1st round of leadership contest.
6.17pm BST
We're filing into ctte room 6 for result of 1st ballot in Tory l'ship contest. Evidently Graham Brady will take 36 secs to read result
6.16pm BST
A very relaxed and smiling Andrea Leadsom sitting on the terrace in parliament this evening. Should get that ballot result in 15 mins-ish.
6.13pm BST
Confirmed. David Cameron did *not* vote in the ballot to choose his successor
6.12pm BST
Nick Boles, who is campaigning for Gove, cast Sir Nicholas Soames' proxy vote for May, came out to prove it
6.10pm BST
There are 330 Tory MPs.
If the Sky tally (see 6.01pm) is right, there are 108 MPs who have not declared. So that means the actual figures will be quite different.
6.10pm BST
Sources close to Tom Watson said the Labour deputy leader’s talks with Len McCluskey are over for today.
But Watson has agreed to clear his diary for the rest of the week in order to meet with other union general secretaries to continue discussions about a “negotiated settlement” over Labour’s “impasse”.
6.01pm BST
Here is a Sky News tally of how many Tory MPs have declared for each candidate from earlier today.
Latest Sky figures #ConservativeLeadership MAY:122
CRABB:25
GOVE:27
FOX:8
LEADSOM:40
#ToryLeadership Declarations
Theresa May - 110
Andrea Leadsom - 40
Michael Gove - 25
Stephen Crabb - 22
Liam Fox - 8
Undeclared - 125
5.57pm BST
In the past, the results of ballots of Tory MPs have been announced off camera. But tonight a film crew is being admitted into the committee room where the count is taking place to record Graham Brady announcing the result.
5.55pm BST
The Conservative leadership ballot closes at 6pm.
The votes will be counted immediately, and Graham Brady, chair of the backbench 1922 Committee, is expected to announce the results at about 6.30pm.
5.52pm BST
Earlier I posted an Andrea Leadsom reading list (see 1.56pm) reflecting the fact that she is probably the Conservative leadership candidate about whom least is known. Here is a second one with some more material about her. My colleagues Peter Walker and Jessica Elgot have contributed.
The other danger of a Leadsom leadership is UK Independence party entryism. Arron Banks, the millionaire donor who funded both Ukip and Leave. EU, is backing Ms Leadsom’s campaign. At the hustings, she would not rule out a partnership with Ukip and during a television interview, declined to say she would not give Nigel Farage a job.
Mr Banks has spoken about his desire to create a “rightwing Momentum”, a Brexit pressure group modelled on Mr Corbyn’s grass roots support base. A Tory party led by Ms Leadsom would provide the perfect opportunity for hard-right Brexit supporters to infiltrate the Conservatives (this cannot happen in time for the current leadership contest, however: the rules dictate you have to be a Tory member for three months to be eligible to vote).
5.22pm BST
Jeremy Corbyn and Tom Watson have held separate talks with the leader of the country’s biggest union in an attempt to resolve the crisis at the top of the Labour party, the Press Association reports.
Deputy leader Mr Watson was holding a series of talks with union chiefs in an attempt to end the impasse over Corbyn’s position.
Both Watson and Corbyn discussed the situation with Unite general secretary Len McCluskey, who has called for the unions to broker a peace deal in the deeply divided Labour party.
Len McCluskey met Jeremy Corbyn, after meeting Tom Watson.
JC + TM didn't meet. Labour leadership turning into Relate counselling session
5.15pm BST
A German political party is attempting to woo British start-ups to Berlin following the UK’s vote to leave the EU, the Press Association reports.
The Free Democratic party (FDP) hired an ad-van emblazoned with a billboard aimed at enticing companies to move to the German capital in the wake of the referendum result.
The Berlin branch of the FDP, a junior coalition party to Angela Merkel’s Christian Democrats between 2009 and 2013, drove the van across London on Tuesday ahead of a key regional election in September.
5.13pm BST
Donald Tusk, the president of the European council, told the European parliament today that national governments should stop criticising the EU because negative comments about it contributed to Britain voting to leave. He told the MEPs:
In the current situation, attacks on the EU institutions, including the commission and the parliament, can only deepen the confusion.
The national capitals must undertake an effort to stop accusing the EU and its institutions of weaknesses and failures. The referendum in the UK was lost also because the political elites have for years been building a negative and often unfair vision of the EU.
5.04pm BST
There is some evidence that EU nationals due to come to the UK to work for the NHS are having second thoughts since the Brexit vote, the Press Association reports.
Prof Jane Dacre, president of the Royal College of Physicians, has said that there is “anecdotal evidence” that the NHS is struggling to recruit European staff following the referendum.
She said: “There is a lot of chatter about around EU doctors who feel uncomfortable continuing to be here and are not applying for posts in the UK.”
5.00pm BST
Late voter spotted leaving the Committee corridor - the Chancellor - remaining tight lipped on who he has voted for, praising all candidates
4.59pm BST
The Conservatives, Labour and Ukip are not the only parties in the midst of leadership contests or crises. The Green party is looking for a new leader, too, and today they have announced the six candidates (two of whom are proposing a job share).
4.51pm BST
Keen-eyed observers of this morning’s papers could not fail to miss the distinctive man in the triple-tweed ensemble behind Nigel Farage as he left his resignation press conference. The man with the short back and sides is Gawain Towler, his loyal press secretary of 12 years.
Towler, 48, a former Brussels correspondent for Private Eye, is now looking for a new position. He has a reasonable claim to be one of the most experienced crisis PR operators in Westminster.
4.50pm BST
Theresa May has told the Evening Standard in an interview that she would expect EU leaders to engage in informal talks about Brexit before the UK triggers the formal withdrawal process. The most senior EU leaders have rejected this idea. But May told the Standard:
In the European negotiations I have been involved in, you often have preliminary talks before you actually reach the formal position. This will be a point of discussion ...
I would hope that we would see that everybody recognises it is not just for the UK’s benefit but actually for the benefit of the EU that we have sensible discussions that are undertaken in a good spirit of willingness to get a deal that is right for us but also a sensible deal for the EU.
4.40pm BST
The Labour MP Ian Austin is rather envious of the efficiency with which the Conservative party is getting round to selecting a new leader.
Tory MPs just started voting. for their new leader. Could all be done and dusted by next week. That's how a serious political party acts.
4.36pm BST
At the afternoon lobby briefing the prime minister’s spokeswoman was asked if he, like Ken Clarke, finds Theresa May “difficult” to work with. She replied:
He has found she has done a very good job as home secretary and they have worked very closely together on a whole range of issues.
I think it reflects the working relationship between prime minister and home secretary. It’s not that different to how he works with other cabinet ministers.
4.29pm BST
The Liberal Democrat foreign affairs spokesman Tom Brake has tabled a 10-minute rule bill to give EU nationals the right to stay in the UK. It will be debated next Tuesday (for 10 minutes). The motion may well get approved without a vote, but 10-minute rule bills almost never become law. The procedure is intended to allow MPs to raise an issue, not to pass legislation.
4.17pm BST
The first minister, Nicola Sturgeon, will write to all EU nationals living in Scotland, sending them a message of reassurance that her government will “pursue every option to protect Scotland’s position in Europe and, by extension, the interests of EU citizens who live and work here”.
The announcement came after Sturgeon met consuls and diplomats from 18 EU countries earlier today. Immediately following the meeting she branded “inhumane” the UK government’s refusal to guarantee the rights of EU nationals living in Scotland.
4.13pm BST
Ken Clarke is unrepentant, too, LBC’s Theo Usherwood reports.
.@KayBurley and @SkyNews can rest easy. A jovial Ken Clarke tells me: "There's no point denying it, they are my views."
4.11pm BST
Sir Malcolm Rifkind, the former Conservative foreign secretary, has no regrets about being recorded criticising Michael Gove. In supposedly private remarks broadcast by Sky News (see 2.22pm), Rifkind said:
I don’t mind who wins as long as Gove comes third. As long as Gove doesn’t come in the final two I don’t mind what happens.
My comments speak for themselves, and they appear to be shared by quite a high proportion of the human race.
It all adds to the sum of human life. It was a bit naughty of them.
4.02pm BST
Scotland Yard received more than 200 hate crime reports in the days after the EU referendum, the Press Association reports.
Britain’s largest force logged 232 allegations from Friday June 24 to Tuesday June 28.
Of these, eight were targeted against Polish or other European communities, Metropolitan police commissioner Sir Bernard Hogan-Howe said, while 23 are considered to be related to the referendum “in as much as” it was “directly referenced or alluded to” during the alleged offence.
3.45pm BST
In the House of Lords debate on the EU referendum, the archbishop of Canterbury, the Most Rev Justin Welby, said the Brexit vote had led to the worst “out-welling of poison and hatred” he had seen for years.
The events of the last two weeks have led to some of the most dramatic and dynamic changes that we’ve known. The course of the campaign was both robust, as it properly should be on such great issues, but at times veered over the line on both sides into being not merely robust but unacceptable.
Through those comments were created cracks in the thin crust of the politeness and tolerance of our society, through which, since the referendum, we have seen an out-welling of poison and hatred that I cannot remember in this country for very many years.
The biggest thing it seems to me that we must challenge, my Lords, if we are to be effective in this creation of a new vision for Britain – a vision that enables hope and reconciliation to begin to flower – is to tackle the issues of inequality. It is inequality that thins out the crust of our society. It is inequality that raises the levels of anger and bitterness.
We have done it before, my Lords. This is not new. In the 19th century we tackled inequality. In the great governments following 1945 we tackled the inequality that had been so ruinous to our society in the 1930s and led to the failures of that time.
3.18pm BST
Embassies have seen a “wave of interest” in passport and citizenship inquiries during the week after Britain voted to leave the European Union, the Press Association reports.
Polish, Italian and Canadian embassies reported increased levels of interest since the Brexit side claimed victory, while Ireland’s post offices ran out of passports after a surge in demand.
Poland’s embassy in London said its consulate had received at least 200 emails and 600 phone calls regarding Polish citizenship and passports in the six days after the referendum vote, mainly from people with Polish origins.
3.15pm BST
This is from Sky’s Jon Craig.
80% of Conservative MPs have now voted in round one of Tory leadership election, minister who supports Theresa May tells me.
3.07pm BST
Stephen Crabb, the work and pensions secretary, has said that as prime minister he would put pressure on Northern Ireland to accept marriage equality. Northern Ireland is the only part of the UK where gay marriage is still illegal.
Crabb made the comment in an interview with Pink News. Referring to marriage equality, he said:
If I was prime minister of the United Kingdom, I think it’s a hallmark of an integrated, cohesive state that you have equal rights. There shouldn’t be a patchwork of rights.
I know what the sensitivities are in Northern Ireland but given the overwhelming referendum in the south and given where the rest of Britain is, I think that there is a really good case to sit down with Northern Ireland ministers constructively and say, ‘Look, come on, we’re a United Kingdom let’s at least have a united framework and coherent framework of rights.’
2.52pm BST
Tristram Hunt, Labour’s last but three shadow education secretaries, has today written to Nicky Morgan demanding “a clear statement of intent” over the status of EU nationals attending schools in England amid apparent disagreement between herself and the immigration minister on the subject. Hunt wrote:
The absence of planning by the DfE into the consequences of Brexit for children in English schools has been shameful – and it is teachers, schoolchildren and parents who will suffer. At school gates across the country there is now an atmosphere of confusion and concern, which has only been exacerbated by increased incidences of racist and xenophobic abuse. We need a clear statement of intent about how you are going to protect the education and learning of valued pupils in our schools. And we need it now.
2.22pm BST
Sky News has just broadcast footage of Kenneth Clarke, the former Conservative chancellor, mocking three of the leading candidates in the leadership contest.
Clarke was in discussion with Sir Malcolm Rifkind, another former Tory cabinet minister. The two of them were chatting in the studio before going on air to discuss the contest, apparently unaware that their conversation was being recorded.
Here are some more nuggets from the Clarke/Rifkind exchange pic.twitter.com/JApXZiwBGd
1.56pm BST
Within the space of a week Andrea Leadsom has gone from being a relatively unknown energy minister to second favourite to become next prime minister. As a result journalists have been looking at her record in some depth. Here are some blogs and articles that shed light on her views.
Watch Andrea Leadsom calling for minimum wage to be scrapped for small businesseshttps://t.co/Q6iatPUEVt pic.twitter.com/Ib3sVB2AlW
1.32pm BST
In his evidence to the Commons foreign affairs committee Oliver Letwin, the Cabinet Office minister, said the government did not accept that parliament had to vote on the decision to invoke article 50 of the Lisbon Treaty (the move that formally starts the two-year EU withdrawal process).
Letwin reveals govt lawyers have advised Article 50 is a prerogative power so triggered by PM not parliament.
But Letwin adds parliament is involved in repeal of European Communities Act hence involved in Article 50
Will the UK still take up its presidency of the EU next year? Letwin: "It remains to be seen."
Another Brexit casualty - Oliver Letwin's summer holiday: "I am intending to be here almost every day of August, and all the days of July"
1.23pm BST
And here are some more Tory MPs backing Theresa May on Twitter.
Of 20 emails demanding I vote for a particular MP today 1 is a C mber.5 UKIP,6 Against C,4 Unk'n,2 Vote C. Nice try I'm voting for Theresa
Having spoken to all 5 leadership candidates & attended last night's hustings, I'll be voting for Theresa May for her judgement & experience
Voting is underway, & lots of thumbs up for Team Theresa @TheresaMay2016 #TM4PM pic.twitter.com/6HvTCisxGR
I am backing @TheresaMay2016 to become the next Prime Minister & leader of the Party. Read my statement here: https://t.co/1GQR8cuf3u #TM4PM
New PM needs experience & vision 2 navigate through these challenging times. That's why I’m backing @TheresaMay2016: https://t.co/zFaPuj5a5w
I am backing @theresamay2016 to be our next Party Leader & Prime Minister. Read my statement on why here: https://t.co/R2dKpg9ueS #TM4PM
I have just voted for @andrealeadsom for next Tory leader & PM in the first round of voting today
Why I am backing my friend @scrabbmp to be the next Prime Minister https://t.co/UgfER41oD4 @Crabb4PM
1.17pm BST
This is from the Spectator’s James Forsyth.
May campaign not keen on tactical voting to keep Leadsom off ballot. But some ministers backing her are--& considering doing it unilaterally
1.09pm BST
Nicola Sturgeon, Scotland’s first minister, has joined those criticising Theresa May’s stance on EU nationals living in the UK (see 9am and 1.04pm). Sturgeon said May’s stance was “disgraceful” and “disgusting”. This is from Channel 4 News’s Matthew Moore.
.@NicolaSturgeon calls @TheresaMay2016's position on EU migrants "disgraceful" and "disgusting". pic.twitter.com/0cNL0nCf9U
Nicola Sturgeon tells @GlennBBC that Theresa May comments a disgrace "human beings are not bargaining chips"
1.04pm BST
Theresa May’s campaign team has sought to clarify her stance on EU nationals living in the UK in light of the continuing criticism she is receiving for failing to guarantee that they will be able to stay. (See 9am.) A source said:
At last night’s meeting of the 1922 committee Theresa was very clear about the position of EU nationals in Britain, and argued that it was equally important to consider the rights of British nationals living abroad. Her position is that we will guarantee the legal status of EU nationals in Britain as long as British nationals living in EU countries have their status guaranteed too.
1.00pm BST
Greg Hands, the chief secretary to the Treasury, declared this morning that he was backing Theresa May. The Sun’s Tom Newton Dunn reads that as evidence that May has secured the backing of George Osborne, the chancellor, who has been keeping his intentions to himself.
One of the most intriguing endorsements yet - Team Osborne is coming in behind May and not Gove;https://t.co/j4gi2Q1DOK
12.57pm BST
The Tory leadership race is dragging politics into primary school test results, with Labour and the Lib Dems using today’s key stage 2 Sats statistics as a weapon to bash contender Michael Gove and his backer Nicky Morgan.
Tim Farron, the Lib Dem leader, said: “These Sats results show starkly that they are gambling the futures of these young people on Michael Gove’s misty-eyed world view where every school is a prep or grammar school, students are robotic and teachers skip around teaching past participles and antonyms by rote to seven-year-olds. It sounds more like an Enid Blyton book than reality.”
12.53pm BST
Time was when British commentators loved to compare Angela Merkel, when she first came into office over a decade ago, to Margaret Thatcher. Merkel was going to be Germany’s Eiserne Frau or Iron Lady. No one makes that comparison any more. Instead, German commentators are right now struck by the strong resemblances between Theresa May and their own leader, Angela Merkel, writes our Berlin correspondent, Kate Connolly.
In a commentary for the German TV station NTV, Wolfram Weimer writes: “The home secretary has the best chance. With her, London would get a duplicate of the German chancellor.”
Reflecting on the fact that it has in the past not infrequently been a woman who has steered Britain out of a crisis, listing Elizabeth I, Queen Victoria and Margaret Thatcher as examples, Weimer says, now it could well be May’s turn to take up the role. He describes the 59-year-old as “something like the Angela Merkel of England. A pastor’s daughter who operates in an aloof and sober way, but who always knows exactly what she wants. Like Merkel, May was also the general secretary of her party during a time of crisis, like Merkel she applied ointment to the wound, like Merkel, May has managed to assert herself against all manner of macho men, with a cool determination.”
12.47pm BST
Jeremy Corbyn is not the only party leader losing frontbenchers. The health minister, Alistair Burt, has just told MPs that he will leave the government when the new prime minister takes over. This is from the Telegraph’s Ben Riley-Smith.
Alistair Burt, Tory health minister, just announced he will step down from front bench when new leader is installed.
12.41pm BST
And, talking of Boris Johnson, he has just been speaking to Sky News about why he is backing Andrea Leadsom. It is because she is very experienced and “very, very capable” and because she will build a good team, he said.
And why aren’t you backing Michael Gove, he was asked. Johnson smiled, and replied:
Because Andrea Leadsom, I think, has all the qualities that you need at the moment. She’s got a lot of zap, a lot of drive, and all the experience. Plus I think she can articulate what’s needed at the moment, which is a bit of an antidote to some of the gloom and negativity and misunderstanding about what the Brexit vote means. Because some people think that it’s the end of the world. It’s not. On the contrary, it’s a massive opportunity for this country.
12.31pm BST
Speaking in the European parliament this morning, Jean-Claude Juncker, president of the European parliament, described Boris Johnson, the leading Tory Vote Leave campaigner, and Nigel Farage, the outgoing Ukip leader, as “retro-nationalists”.
12.19pm BST
Crispin Blunt, the Conservative MP who chairs the foreign affairs committee, told Oliver Letwin that it was a “dereliction of duty” for David Cameron not to make any contingency planning for a Brexit vote. There were only two possible outcomes from the referendum, he said. And, since Cameron said he was planning to remain as prime minister whatever the result, he should have planned for a leave vote, he said.
12.14pm BST
Letwin says that his unit is preparing a series of option papers for the next government. He wants to have them ready for 9 September, when the new prime minister is elected.
Those option papers will not include recommendations, he says.
12.11pm BST
Oliver Letwin, the Cabinet Office minister who is overseeing preparations for the EU withdrawal negotiations, is giving evidence to the Commons foreign affairs committee now. You can watch the hearing here.
I will be monitoring it closely, and posting any highlights, but without covering it in full.
12.05pm BST
Michael Dougan, professor of European law at the University of Liverpool, has been giving evidence to the Commons Treasury committee this morning about Brexit. My colleague Patrick Wintour has some of the highlights.
Prof. Michael Dougan: EFTA countries can be taken to EFTA court by EFTA surveillance authority. Judgements are binding in international law.
Dougan on withdrawal:"main worry is it is a job that cannot be done by parliament alone, requires enormous delegation of power to executive"
Dougan to Treas Sel Comm. French legal service has told French govt is that it would be possible for UK to trigger Art 50, and then revoke.
Dougan: To secure an EEA agreement, UK must avoid a veto by Swiss, 3 EFTA countries, 27 EU countries and European Parliament. 32 vetoes.
Many experts (boo) to Treasury Sel Comm say national elections in France and Germany mean no sense in triggering Art 50 until late 2017,
11.52am BST
Here is Sky News’ latest tally on how many declared MP supporters each candidate in the Tory leadership contest has.
Latest on MPs from @SkyNews in Tory leadership contest
MAY:122
CRABB:25
GOVE:27
FOX:8
LEADSOM:40
11.48am BST
Labour is going to hold an emergency debate in the Commons tomorrow on the rights of EU nationals living in the UK, Andy Burnham, the shadow home secretary, says.
Shadow Cabinet has agreed to hold an emergency debate tomorrow on EU nationals living in UK. Please ask your MP to support Labour motion. RT
11.44am BST
Jeremy Corbyn is due to announce the full details of his new shadow cabinet, the BBC’s Vicki Young reports.
Final Shadow Cab line up will be announced later. Asked about junior posts Corbyn spokesman says "Rome wasn't built in a day." #labour
11.41am BST
In the House of Lords peers have just started a debate on the EU referendum. More than 100 peers are due to speak and you can see who will be speaking, and when, on the speakers’ list on the Lords whips office website.
I will not be covering the debate in detail, but I will try to flag up any highlights.
11.36am BST
The Liberal Democrats are saying that today’s Bank of England financial stability report (see 11.28am) shows that the leaders of the leave campaign have been lying to the public about the economic consequences of Brexit. This is from Susan Kramer, the Lib Dems’ Treasury spokesperson.
The leaders of the Brexit campaign, including Andrea Leadsom, have been quick to claim that any hit to our economy was a minor blip and already in the past. The Bank of England’s report shows that those who lied during the campaign are continuing to treat the public like fools even now. They need to stop pretending all is well and start acting in the interests of the country.
The FPC’s report confirmed that our economy is now in serious danger as business confidence evaporates. Every single job lost, every deal cancelled and every home foreclosed will be on the hands of those who promised the earth but offer no clear picture for our future relationship with Europe.
Andrea Leadsom just before the Brexit vote https://t.co/kB4yng1mQt pic.twitter.com/PXFai2aID8
11.28am BST
The Bank of England has published its financial stability report today. You can read it here.
And here is an extract from the executive summary.
There will be a period of uncertainty and adjustment following the result of the referendum. It will take time for the United Kingdom to establish new relationships with the European Union and the rest of the world. Some market and economic volatility is to be expected as this process unfolds.
The degree of uncertainty and nature of adjustment is evident in financial market prices, which have moved sharply following the referendum. Between 23 June and 1 July, the sterling exchange rate index fell by 9% and short-term volatility of sterling against the dollar rose to its highest level in the post-Bretton Woods era. Equity prices of UK banks have fallen on average by 20%, with UK-focused banks experiencing the largest falls. Equity prices of domestically focused companies have fallen by 10%. The ten-year UK government bond yield fell by 52 basis points. These moves reflect an increase in risk premia on UK assets, a perceived weaker growth outlook, and anticipation of some future deterioration in the United Kingdom’s terms of trade and supply capacity.
11.21am BST
The pound is continuing to fall in value in the light of the Brexit vote, the Press Association reports.
Sterling plunged to new lows against both the dollar and the euro on Tuesday as the UK’s decision to leave the European Union continues to batter investor confidence in the country.
The pound plunged to 1.3117 dollars, down 12% since the Brexit vote and hitting a 31-year low. Sterling also fell to its weakest level against the euro since 2013 at 1.1787 euros.
11.15am BST
Mark Carney, the governor of the Bank of England, has just announced that it is easing its bank lending rules to help limit the risk of Brexit damaging the economy.
My colleague Graeme Wearden is covering Carney’s press conference in detail on his business live blog.
Related: Mark Carney eases bank lending rules to fight Brexit crisis as pound hits 31-year low - live updates
Mark Carney confirms that the Bank of England has decided to cut the ‘counter-cyclical capital buffer’ on UK banks.
This means banks need to keep less capital on their books, and can pump up to £150bn more into the economy.
11.11am BST
The Guardian’s account of how the five Tory leadership candidates performed at the private hustings for MPs last night is here.
Others have good accounts too.
One cabinet minister said she was asked three times about her backing from Ukip and Leave.EU. “When you’re asked to say you’re not Ukip at a hustings to be leader of the Conservative party, you’re in trouble,” he said. “It was a car crash.”
Another MP said her pitch was a “fucking shambles”, adding: “She babbled on about the importance of the frontal cortex for emotional development, said she’d trigger article 50 immediately – and then that she wouldn’t. She was good for the first three minutes though.”
Unlike Gove, he devoted most of his 15 minutes to giving a speech. He emphasised his experience and his ability to take decisive decisions. He said that he would ringfence the mental health budget and increase defence spending. He talked about the dangers of cyber-terrorism and won smiles when he warned the 2010 and 2015 intakes not to believe the job offers that candidates make to them.
The view of Tory MPs afterwards was that Fox was, most likely, auditioning to be foreign secretary rather than prime minister. Hence, the global focus of the speech.
10.56am BST
Priti Patel, the employment minister and a lead figure in the Vote Leave campaign, has written an article for the Telegraph setting out what qualities she is looking for in the next Conservative leader. She does not say who she is backing, but she says the party needs someone who is “tried and tested, capable of making tough decisions and can lead a team negotiating with EU institutions” but who can also “bring together, both the entire Conservative party and our country”.
Although Patel does not say which of the five candidates best meets these criteria, a source in the Theresa May camp has been emailing a link to the interview to journalists – so perhaps we can draw our own conclusions.
10.41am BST
The crisis in Labour is generating increased interest in the possibility of a split, and the formation of a new party. In the Times today Rachel Sylvester says a growing number of MPs and peers are interested in creating a new party of the centre left. (See 6.49am.) And in the Financial Times Janan Ganesh says these Labour splitters should not be deterred by the memory of what happened to the Social