Brexit fallout as it happened: Boris Johnson rules himself out of bid for the Tory leadership

Another dramatic day in British politics is over. Boris Johnson, the former favourite in the Conservative leadership election, has ruled himself out of the running after Michael Gove, his Vote Leave ally, launched a surprise bid.

Meanwhile, Bank of England governor Mark Carny has hinted that the central bank may raise interest rates in reaction the UK's decision to split from the EU, while it doesn't look like Jeremy Corbyn is going anywhere.

The Labour leader has issued another statement calling for unity from the party's supporters. A source close to Angela Eagle told IBTimes UK that the former shadow business secretary delayed the launch of her leadership challenge to give Corbyn more time to quit. Will she now make a move in reaction to Corbyn's latest defiant comments? IBTimes UK for more.

Jeremy Corbyn has just sent this email to Labour members. In the message, the embattled left-wing leader tells the party's supporters:

United we stand, divided we fall is one of the oldest and truest slogans of the Labour movement.

After last week's referendum, our country faces major challenges. Risks to the economy and living standards are growing. The public is split.

The Government is in disarray. Ministers have made it clear they have no exit plan, but are determined to make working people pay with a new round of cuts and tax rises.

Labour has the responsibility to give a lead where the Government will not. We need to bring people together, hold the Government to account, oppose austerity and set out a path to exit that will protect jobs and incomes.

To do that we need to stand together. Since I was elected leader of our party nine months ago, we have repeatedly defeated the Government over its attacks on living standards. Last month, Labour become the largest party in the local elections. In Thursday's referendum, a narrow majority voted to leave, but two thirds of Labour supporters backed our call for a Remain vote.

I was elected leader of our party, for a new kind of politics, by 60% of Labour members and supporters. The need for that different approach now is greater than ever.

Our people need Labour Party members, trade unionists and MPs to unite. As leader it is my continued commitment to dedicate our party's activity to that goal.

Bank of England governor Mark Carney is now making a statement on the central bank's position a week after the UK went to the polls in the EU referendum. The Canadian economist, after joking about losing his job, says Britian has "one of the most flexible economies in the world", while stressing a clear plan is needed after the decision to split from the EU.

Carney also hints that the BoE could cut interest rates: "In my view, and I am not pre-judging the views of the other independent MPC members, the economic
outlook has deteriorated and some monetary policy easing will likely be required over the summer.

"The Committee will make an initial assessment on 14 July, and a full assessment complete with a new forecast will follow in the August Inflation Report. In August, we will also discuss further the range of instruments at our disposal."

Ukip leader Nigel Farage isn''t happy.

We've just published an article from Alastair Campbell, former director of communications to Tony Blair and IBTimes UK columnist.

Campbell argues that the lack of post-Brexit strategy has led to both Cameron's resignation and Johnson's downfall and also may well see off Gove too.

He adds:

The lack of leadership shown by Johnson and Gove since 23 June has been little short of horrific – and another reason why their star is falling. Never off our screens for the days leading up to the vote, confident and cocky and full of witty one-liners as could be expected for good copy writers.

Then, they vanished. Not showing their faces in the Parliament whose sovereignty this has allegedly all been about. Not facing the media to be questioned about the blatant lies they told. Not even trying to make contact with the prime minister to assess what role they might play in settling the pound, the markets and the mood of a nation they had helped to divide.

So if you can't do strategy, you can't do leadership. And if your vision of teamship is to make people laugh by bumbling and ruffling your own hair, then it becomes blindingly obvious why the conventional wisdom about Johnson was wrong. Our political processes have a way of stopping totally unsuitable people from reaching the very top.

You can read the full column from Campbell here.

As promised, here's the full story on Eagle delaying her announcement for the labour leadership in the hope he still does "the right thing" and resign

Corbyn's people have got in touch with us to deny an earlier report that some of his closest allies are forcing him to remain Labour leader.

"This is silly and deliberate briefing to destabilise his leadership," the spokesman told IBTimes UK. "He is personally determined to continue to carry out the role of leader that he was democratically elected to."

Ruth Smeeth, the Labour MP at the centre of the anti-Semitism row from before, has responded to the incident in a blog post. She is now also calling for Corbyn to resign and be replaced by someone who has the "backbone to confront racism and antisemitism in our party and in the country".

Smeeth adds:

It appears that Eagle may be expecting Corbyn to finally stand down following the controversy at the press conference announcing the results of the anti-Semitism inquiry by former Liberty director Shami Chakrabarti where he appeared to compare Isis to Israel.

That wasn't even the only thing that caused outrage at the event. From our story published earlier:

"The press conference announcing its findings descended into chaos, however, after Jewish Labour MP Ruth Smeeth reportedly left the room in tears when she was accused by an activist sitting in the audience of being in 'collusion' with anti-Corbyn members of the press.

"The activist, reportedly from the pro-Corbyn Momentum movement, had handed out deselection leaflets and refused to give one to Smeeth, warning "traitors" would be found out. He then took down her name, saying she was in cahoots with a journalist from the Telegraph newspaper.

"Several witnesses said Smeeth, the MP for Stoke-on-Trent North, then left the room in tears."

Completing what has been a pretty unpredictable day so far, it turns out Angela Eagle will not be announcing her Labour leadership bid this afternoon as expected.

More from our politics reporter Ian Silvera:

"A source close to Angela Eagle has told IBTimes UK that the former shadow business secretary will not make a speech at 3pm BST, but she will launch a leadership challenge against Corbyn if he does not quit: 'We think he wants to go, but we think people in his office are preventing him. He needs to do the right thing and go now.'"

Full story to follow

In a statement about Labour's report into antisemitism, the Jewish Leadership Council said in a statement: "The final verdict on the Chakrabarti Report will depend upon its implementation. We welcome the rejection of the use of the term Zio, the condemnation of manipulating the Holocaust and of the stereotyping of Jews. That the MacPherson Principle should serve as a guidepost when responding to allegations of antisemitism is also important.

"We are concerned that ruling out lifetime bans and automatic suspensions could send the wrong signal to the community and we are disappointed that the Royall Report into antisemitism at Oxford University was not included and has still not been published.

"It is for the Labour Party to guarantee full, effective and detailed implementation of the report's recommendations. The party must ensure that as a result of this report, antisemitism is pushed out of the party and Jewish members and supporters feel welcome and protected.

"We thank Shami Chakrabarti for her efforts and for her engagement with the Jewish community."

Labour's antisemitism report, following an inquiry chaired by Shami Chakrabarti, offers 20 recommendations to the Labour Party. However, it did not recommend a lifetime ban for members found to have been antisemitic.

Reports have come in that a Jewish MP left the antisemitism event in tears and that Labour leader Jeremy Corbyn compared Israel to Isis.

Members of the Labour Party must stop using Holocaust metaphors, an inquiry into antisemitism recommended.

The inquiry was launched after anti-Semitic comments made by Naz Shah were uncovered on her social media pages, resulting in her suspension from the party.

The inquiry found there was an 'occasionally toxic atmosphere' in the party, the BBC reported, but added it was not overrun with antisemitism.

There have been varied reactions on Twitter to Boris Johnson's decision not to run for Tory leader, and his name is currently trending. Here are some of the best ones:

Attorney General Jeremy Wright has spoken out about his preferred candidate for Tory leadership - Stephen Crabbe.

He told the BBC: "I want somebody with the competence and the credibility to make a good deal for Britain."

Here's also a quick reminder on whether Gove himself thinks he will be a good potential prime minister.

There is also this extract from a 2012 interview on Sky News:

"I don't know what I can do in a way but if anyone wants me to sign a piece of parchment in my own blood saying I don't want to be prime minister, then I'm perfectly happy to do that."

Some reactions from the past 45 minutes.

Here's the IBTimes UK's take on Johnson's announcement to not be in running for new leader.

British politics has taken another surprise turn after former Conservative leadership favourite Boris Johnson ruled himself out of the contest. The move comes after justice secretary Michael Gove, a fellow Vote Leave campaigner, made a surprise bid to become David Cameron's successor as prime minister.

Full story: Michael Gove wrecks Boris Johnson's dream of becoming prime minister

So now we're past the 12pm deadline, we know the official candidates in the first stages of the Tory leadership campaign. They are:

Stephen Crabb

Liam Fox

Michael Gove

Andrea Leadsom

Theresa May

These will eventually be whittled down to just two following a vote between Conservative MPs, then a further vote from Conservative members to decide the winner.

After outlining what Britain needs to do post Brexit, Johnson has concluded that the person to lead the UK to do this "cannot be me". He also did not announce who he is backing in the leadership race.

Key extract from his announcement:

I must tell you, my friends, you who have waited faithfully for the punchline of this speech. That having consulted colleagues and in view of the circumstances in parliament I have concluded that person cannot be me.

My role will be to give every possible support to the next conservative administration to make sure that we properly fulfill the mandate of the people, that was delivered at the referendum and to champion the agenda I believe in.

And, if we do so, if we invest in our children and improve their life chances, if we continue to fuel the engines of social mobility, if we build on the great reforming legacy of David Cameron, if we invest in our infrastructure and we follow a sensible, one nation Conservative approach that is simultaneously tax-cutting and pro-enterprise, then I believe that this country can win and be better and more wonderful and, yes, greater than ever before.

Boris Johnson has announced he will not run in the Tory leadership race, adding there is a change in this country since they voted to leave the EU, a decision which he "passionately supports".

Helpfully points out that "I'm no communist" but wants a fair economic system as some people have not had a par rise in this country for years.

Says now is the time to show to what "what kind of country Britain is" with regards to diversity and how its celebrate the people who come to this country to make it better, as well as allowing the freedom of gay people to get married.

Johnson is yet another candidate who says he will "unite" the party following the Remain/Leave split in the run up to the EU Referendum.

Photo below of Gove and Johnson in happier, simpler times...

And now here's Hunt's explanation for not standing in leadership race and to back May instead.

I have decided that now is not the right time for me to run for the leadership - though I remain completely committed to ensuring we secure our position as a great trading nation with sensible controls on migration. I believe that Theresa May has the strength, judgement and values to deliver those things. She is the right choice to lead Britain in a challenging period and will make a truly outstanding prime minister.

Health secretary Jeremy Hunt and education secretary Nicky Morgan have both announced they will not be running in the Tory leadership race.

Hunt said he will back May for the leadership, with Morgan backing Gove.

Full statement from Morgan:

Over the past week it has become clear just how divided our nation is - between young and old, north and south and those with different education and work backgrounds. So it is clear to me that the next leader of the Conservative Party must be someone who can unite the country, who can heal the wounds that the referendum exposed but also, and I think this is what we must not lose sight of, present a confident, positive and optimistic platform for our country's future in which this Party appeals to the centre ground of British politics.

It is equally important that we now secure the right deal for Britain – and the next leader must have the skill and credibility to put together the right team to renegotiate our exit from and future relationship with Europe and explain the final terms to the British people.

Having spent the past week talking to colleagues in Parliament, party members and constituents I have concluded unequivocally that the right person to do that is Michael Gove and I am delighted to be endorsing his candidacy today.

Boris Johnson is set to announce his leadership bid any moment now and is sure to be unhappy about Gove's shock decision. The pair played a key part in campaigning for Britain to Leave the EU together and now it looks it'll be a choice of between either of them and Theresa May for the two main candidates.

We have some betting odds on who will be next Tory leader, with Gove making the biggest waves since his shock bod announcement.

Elsewhere, it appears May is the favourite across the board after already leading in the early opinion polls.

Betfair

William Hill

Some more quotes from May's speech, as well as video below.

Following last week's referendum, our country needs strong, proven leadership to steer us through this period of economic and political uncertainty and to negotiate the best possible terms as we leave the EU. We need leadership that can unite our party and our country.

"We need a bold new positive vision for the future of our country - a country that works not for a privileged few but for every one of us."

If you are from an ordinary working class family, life is just much harder than many people in politics realise.

You have a job but you don't always have job security, you have your own home but you worry about mortgage rates going up, you can just about manage but you worry about the cost of living and the quality of the local school because there is no other choice for you.

Frankly, not everybody in Westminster understands what it's like to live like this and some need to be told that it isn't a game. It's a serious business that has real consequences for people's lives.

Some of the key points from May's speech:

• No general election until 2020.
• No second EU referendum.
• Article 50 should not be invoked until we are ready.
• Abandon plans to get Britain to withdraw from European Court of Human rights.
• Will introduce measures to bring down immigration.
• Will unite not only the Tory party but the whole of the UK following the Brexit split.
• "My pitch is very simple, I'm Theresa May and I think I am the best person to be prime minister of this country."

Another dig at Johnson from May with regards from his negotiations skills with Europe: "The last time he did a deal with the Germans he came back with three nearly-new water cannons."

She adds some politicians - quite clear who she means – are in it for personal gain, whereas as she "gets on with the job in front of me" and is not seen in parliament pubs or in TV studios.

More key points from May's speech - 'Brexit means Brexit' so no second referendum, no general election till 2020 and Article 50 not to be invoked until deal with EU is clear.

Theresa May is now stepping forward to formally announce her decision to stand as a candidate for the next PM.

She is being backed by Chris Grayling, describing her as someone who is able to "build on David Cameron's legacy".

May gives three reasons why she is running:

More from the email Gove's wife, Daily Mail columnist Sarah Vine, sent out by mistake urging the justice minister to seek specific assurances about his role in any Cabinet led by Johnson before offering his support.

It reads: "One simple message: You MUST have SPECIFIC assurances from Boris OTHERWISE you cannot guarantee your support. The details can be worked out later on, but without that you have no leverage.

"Crucially, the membership will not have the necessary reassurance to back Boris, neither will [Daily Mail editor Paul] Dacre/[Rupert] Murdoch, who instinctively dislike Boris but trust your ability enough to support a Boris Gove ticket.

"Do not concede any ground. Be your stubborn best.

"GOOD LUCK."

And almost straight away, Andrea Leadsom has also announced she has put herself forward to be in running for the new Tory leadership.

Here's the statement from Gove in full:

Some shock breaking news is that Michael Gove looks ready to stand against Boris Johnson in the Tory leadership race.

The news arrieved after Gove's wife, journalist Sarah Vine, accidentally sent out an email to the public suggesting he should not guarantee his support for Johnson's leadership bid without a specific job offer.

The email read: "One simple message: you MUST have SPECIFIC from Boris OTHERWISE (sic) you cannot guarantee your support. The details can be worked out later on, but without that you have no leverage."

The key line from Gove's statement on his leadership bid states he has "reluctantly" come to the decision that Johnson "cannot provide the leadership or build the team for the task ahead".

The BBC is reporting that the highly anticipated decision on the proposed third runway at Heathrow is to be delayed until after a new Tory leader is announced.

With the decision on who will take over from David Cameron not taking place until September, it means the result on whether to expand the airport looks likely not to take pace this year.

As an aside, Tory leader hopeful Boris Johnson is massively against the expansion plan, one time saying he would "lie down in front of those bulldozers" to stop it being built.

One person who will not announce he will run against Corbyn in a leadership race is current Labour deputy Tom Watson. He made clear he will not out his name forward while calling the current situation with Corbyn as a "great tragedy".

Watson told the BBC: "He does have a members' mandate, but those members who join a political party know that you also need a parliamentary mandate if you are to form a government.

"You have to have the authority of the members and your members of parliament, and I'm afraid he doesn't have that with our MPs."

Watson also became the most senior member of the party to want Corbyn to stand down, but said he was "not willing to discuss that with me".

Watson added: "I'm assuming that he remains in office. That's where the situation stands."

As expected, Angela Eagle is also set to challenge Jeremy Corbyn for the Labour leadership as he continues to refuse to stand down after losing the confidence of around 80% of his own MPs.

The announcement is expected to trigger a new leadership campaign, with Corbyn previously saying he will only give up his reign if he lost in a democratic vote.

However, it is reported that Corbyn was willing to stand down but has been forced to stay on by some of his allies on the hard-left, including deputy John McDonnell and his communications chief Seumas Milne, during the battle for "the soul of the party".

The full story on eagle's announcement can be seen here.

For the Conservatives, home secretary Theresa May and key Leave campaigner Boris Johnson will formally make their bid to become the new leader.

In an apparent swipe at the Eton educated Johnson, May described her vision for Britain as one that will work for everyone and "not just a privileged few" and that "some need to be told that what the government does isn't a game".

May currently leads Johnson in the opinion polls for next Tory leader, but there is still a long way to go.

Read the full article on May's planned announcement here.

Good morning and welcome to the IBTimes UK's live blog on a day where a whole host of major announcements are expected for both Labour and the Tories in the ongoing leadership battles.