Closing Summary

Boris Johnson has said he is backing Andrea Leadsom in the battle to become the next Conservative prime minister, saying she offers “the zap, the drive, and the determination” that is needed to lead the country.
In a coup for the insurgent campaign of the energy minister, the former London mayor said he would be voting for Leadsom in the first round of the Conservative party’s leadership election on Tuesday.

Labour deputy leader Tom Watson is seeking to meet trade union chiefs on Tuesday to discuss Jeremy Corbyn’s leadership in a “last roll of the dice” aimed at getting him to step down.
Watson told MPs that he had met with Corbyn on Monday morning and informed him that having the support of the membership was not enough to carry on.

Nigel Farage has resigned as leader of Ukip, saying he had fulfilled his political ambitions after successfully campaigning for the UK to vote for Brexit and that it was time for him to take a rest.
It is the third time he has stepped down as the party leader, but Farage dismissed the idea of coming back again in the future and claimed standing as an MP was no longer top of his to-do list.

Alain Juppé, the favourite to win the French presidential election next year, has said Britain needs to leave the European Union as quickly as possible, arguing that a long period of uncertainty would be damaging to the markets and economic growth.
On a visit to London on Monday, Juppé, who is tipped to win a centre-right primary against Nicolas Sarkozy later this year, said procrastination on Brexit would not be permitted.

Jeremy Corbyn has told MPs investigating accusations of antisemitism in the Labour party that he regrets once calling members of Hamas and Hezbollah “friends”.
Giving evidence at the home affairs select committee on Monday, the Labour leader said that he had used the phrase to describe the militant groups during a meeting in parliament in 2009.

Jeremy Corbyn is likely to face a leadership challenge within days from Angela Eagle or Owen Smith if a negotiated settlement cannot be reached following talks on Tuesday between unions and Labour’s deputy leader, Tom Watson.

The Guardian’s Rowena Mason and Jessica Elgot report that Eagle’s team are still understood to be considering their timing for a challenge, given the upcoming publication of the Chilcot report and the parallel Tory leadership contest, if Corbyn does not stand down.

There’s also more on the Labour PLP meeting from earlier this evening:

The deputy leader later told MPs at Labour’s weekly meeting of their parliamentary party it was their duty to exhaust every avenue in pursuit of a settlement before anyone resorts to a leadership challenge.

Also at the meeting, Neil Kinnock, the former Labour leader, moved some MPs to tears with a speech about the party being based in parliamentary socialism.

One backbencher said the peer received an emotional standing ovation for his comments – reminiscent of his famous anti-Militant tirade at the party’s conference in 1985.

Kinnock said the history of Labour was about winning parliamentary representation for working people, not revolutionary socialism – and pointed out that Corbyn had backed a challenge against him by Tony Benn in 1988, despite his strong mandate.

Read on here

Updated

Winning the support of Boris Johnson will be seen as a coup for Andrea Leadsom, as he is a popular figure among the grassroots and has earned considerable sympathy since his own campaign was thwarted by Michael Gove, says the Guardian’s Anushka Asthana.

The manner in which Gove let his friend down has caused the justice secretary’s campaign to have a slow start, with some MPs saying they feel that there is a question of trust.

The decision for Johnson to back Leadsom could be hugely significant given there are still almost 20 MPs who were going to back him but who haven’t yet declared for another candidate.

If they swing behind Leadsom, the battle will become a clear two-horse race.

One MP reacted to the news by declaring “revenge served cold” and said the move could give her an additional 25 MPs.

It’s worth noting that Johnson’s own campaign collapsed last week partly by failing to offer Leadsom a job.

Tim Montgomerie, the creator of ConservativeHome and a speechwriter for at least two Tory leaders, tweets that he has been shown the outlines of a campaign which is going to be unleashed against Theresa May “targeting her record on immigration, and her competence and courage.”

Just been shown outlines of anti-May campaign - targeting her record on immigration, and her competence and courage. This race ain't over.

— Tim Montgomerie ن (@montie) July 4, 2016

It’s not clear whose camp those attack lines are going to come from. While his twitter feed suggests some warmth towards Andrea Leadsom, I would guess that Montgomerie also shares much common ground with Steven Crabb.

Updated

Here’s the Guardian’s report on Andrea Leadsom’s leadership launch, which came before this evening’s dramatic endorsement from Boris Johnson.

The energy minister tried to differentiate herself from frontrunner Theresa May by promising a quick settlement and insisting that it was right for a supporter of Brexit to take the lead.

“Neither we nor our European friends need prolonged uncertainty and not everything needs to be negotiated before article 50 is triggered and the exit process is concluded,” she said.

Speaking to a room packed with reporters and photographers, and with a number of MPs who had argued vociferously for Brexit, Leadsom said she would convene a team to set out trade, border and security arrangements.

If she wins the race, the MP is planning to have a “dedicated cabinet colleague” leading negotiations.

“I emphasise ‘dedicated’. The team that I will assemble to lead Britain out of the EU will consult opposition politicians, business people, farmers, trades unions and trade negotiators,” said Leadsom, who also promised to work closely with administrations in Scotland, Wales and Northern Ireland.

Updated

As expected, the Johnson intervention is being viewed as further payback to Michael Gove following the criticism of the justice minister by Johnson’s former campaign manager.

BREAK: on heels of @BWallaceMP's brutal attack on @Gove2016, @BorisJohnson finishes the job as he endorses @andrealeadsom

— Beth Rigby (@BethRigby) July 4, 2016

"And definitely not the sort of conniving bastard who wins you over with long words and then knifes you in the back" pic.twitter.com/Sb8dNIiiJg

— Matt Chorley (@MattChorley) July 4, 2016

Updated

Boris Johnson says that Andrea Leadsom offers “the zap, the drive and the determination essential for the next leader of the country”.

The former London mayor also praises the energy minister as “level-headed, kind and trustworthy,” according to a statement put out by him. It says:

Andrea Leadsom offers the zap, the drive, and the determination essential for the next leader of this country.

She has long championed the needs of the most vulnerable in our society. She has a better understanding of finance than almost anyone else in Parliament. She has considerable experience of government.

She is level-headed, kind, trustworthy, approachable and the possessor of a good sense of humour.

She has specialised in the EU question and successfully campaigned for leave and will be therefore well-placed to help forge a great post-Brexit future for Britain and Europe.

Above all she possesses the qualities needed to bring together leavers and remainers in the weeks and months ahead. I will be voting for Andrea Leadsom tomorrow.

Updated

Boris Johnson backs Andrea Leadsom for Tory leadership - reports

Boris Johnson has given his backing to Andrea Leadsom in the Conservative party leadership contest, according to reports.

So what’s going on? Here’s one theory from earlier today:

Suggestion: Boris would be delighted if the seemingly weak Leadsom became PM as he’d be able to squeeze her out in a couple of years time?

— Martin Hoscik (@MartinHoscik) July 4, 2016

It’s obvious, but also worth pointing out that the two worked collaborated closely during the referendum campaign, appearing side by side at the final live debate at Wembley.

Updated

Seven Labour MPs who backed Jeremy Corbyn in last week’s confidence vote - which he lost - have now called for him to resign, according to George Eaton of the New Statesman.

Updated

While Andrea Leadsom has flown under the radar in terms of the Conservative leadership race, the same might be said about her financial career, writes the Guardian’s Simon Goodley.

The Guardian contacted several senior City sources who worked at BZW and Barclays at the same time as Leadsom, but could find none who could recall her spell at the bank, which concluded 19 years ago.

However, memories are fresher of Leadsom’s move in to fund management. One City source, who knew the energy minister when she was working in corporate governance – or policing company boardrooms – at Invesco Perpetual, said: “You don’t survive in the City as a woman without being very good at the details. Financial services is going to be a key area in Brexit negotiations and she is clearly the best qualified candidate in that regard.

“For some organisations, governance is a role that can be taken on as a flexible working role more easily than actual portfolio management. If I recall she was already getting involved in politics and so the job as head of governance would have given her more latitude.”

Updated

Andrea Leadsom did not come off very well in this evening’s Tory leadership hustings, according to freshly filed reports.

The Sun’s Harry Cole writes that she “crashed and burned with a rambling performance” and quotes one MP as saying: “She was rambling, ended up talking about the frontal cortex of a baby’s brain.”

Owen Bennett relays similarly scathing quotes in the Huffpost, quoting a senior cabinet minister as saying: “When you’re having to say that you’re not Ukip at a hustings to be leader of the Conservative Party, then you are in trouble - it was a car crash.”

Buzzfeed’s Emily Ashton tweets:

Not getting rave reviews of Andrea Leadsom at 1922. "Car crash" says one MP. "Fucking shambles" says another.

— Emily Ashton (@elashton) July 4, 2016

Members, on the other hand, would seem to beg to differ. A party leader at odds with their parliamentary party but backed by members? Sounds familiar.

Updated

There’s some confusion about whether that Tom Watson meeting with the unions is on tomorrow after all (or if it was ever on in the first place).

The FT’s Jim Pickard says that a union sources has told him that there is no meeting tomorrow.

The New Statesman’s George Eaton tweeted earlier meanwhile:

Labour leadership challenge will follow unless unions turn against Corbyn tomorrow. Tom Watson clear at PLP.

— George Eaton (@georgeeaton) July 4, 2016

Brexit is “breathtakingly stupid,” according to a man best known of late as the face of a cross-national organisation with tentacles stretching across borders.

No, I’m not talking about Jean-Claude Juncker. The Austrian-born actor Christoph Waltz, who appeared in the latest Bond film as Ernst Stavro Blofeld, head of the global criminal organisation Spectre told the Press Association:

If you put someone at the edge of an abyss the chances that he falls into it are fairly big. And if you get self-centred, let’s say, small spirits, to kick the person at the edge in the butt, he will fall, yes. I find it insanity and breathtakingly stupid.

Updated

Back at the Tory hustings, and Michael Gove has found a way of mentioning Ben Wallace, Boris Johnson’s former campaign manager, who had some choice things to say about justice secretary’s supposed propensity to gossip, ‘particularly when drink is taken’.

The Guardian’s Rowena Mason reports:

Gove made joke about drinking with Dominic Cummings at QPR + not being sure that Ben Wallace wd pick up bar tab. "Awkward," said one MP

— Rowena Mason (@rowenamason) July 4, 2016

She also says that Iain Duncan Smith, who campaigned alongside Andrea Leadsom for a Brexit vote, has revealed that she asked him to work on cross-party EU negotiating positions.

Updated

Tom Watson will hold “last ditch talks” with trade unions tomorrow to try to reach a negotiated settlement on the future of Jeremy Corbyn’s leadership, according to Adam Bienkov of Politics.co.uk.

If that doesn’t happen a challenge could come within 24 hours, he says.

Jim Pickard of the FT has an update:

Am told Watson meeting GMB, Unite, Unison, CWU tomorrow.... https://t.co/NrUaQ5Uthj

— Jim Pickard (@PickardJE) July 4, 2016

We reported earlier today on the chatter about what such a deal could look like. One politician close to the leader told the Guardian it is “50-50” whether Corbyn would win again, but said that if he did then one option could be a collective leadership with a “kitchen cabinet” representing different wings of the party.

The phrase has been used in American and British politics to refer to a leader, such as David Cameron, being supported by an inner-circle of advisers, although in this case it would not necessarily be allies of Corbyn at the top table.

Under such a plan being discussed by some left-leaning MPs, Corbyn could become chairman rather than “supreme leader”. It remains to be seen however if we have gone passed that point.

Updated

Away from Westminster now, and Investors in Standard Life’s property funds have been told that they cannot withdraw their money, after the firm acted to stop a rush of withdrawals following the UK’s decision to leave the EU.

The Guardian’s Hilary Osborne and Jill Treanor report:

The firm halted trading on its Standard Life Investments UK Real Estate Fund and associated funds at midday on Monday, citing “exceptional market circumstances” for the decision.

It said the suspension would remain in place until it is “practicable” to lift it, and that it would review the decision at least every 28 days.

The £2.9bn fund, which invests in commercial properties including shopping centres, warehouses and offices.

It is thought to be the first UK property fund to suspend trading since the 2007-2009 financial crisis, when some of the biggest names in investment management stopped withdrawals because they did not have the money to repay investors.

Labour’s deputy leader, Tom Watson, informed the PLP meeting that he told Corbyn this morning that he should step down, says Michael Crick of Channel 4 News, who adds that at least one MP left the meeting in tears.

MPs at PLP meeting complain they want their "party back" according to one source. At least one complaint about Marxist-Leninism taking over

— Michael Crick (@MichaelLCrick) July 4, 2016

A former leader, Neil Kinnock, got “huge cheers” as he echoed Watson’s call for Corbyn to go, Paul Waugh also reports.

Here’s how Kinnock’s involvement is viewed by at least one Corbyn supporter:

Kinnock getting huge cheers from PLP as he says 'Corbyn has to go'. A loser speaking to people who can't even run a candidate to lose.

— Aaron Bastani (@AaronBastani) July 4, 2016

Updated

While Labour MPs at the PLP meeting have been continuing with their offensive against their leader, the organisation set up on the back of his election to head the party last year has been signalling that they are building up resources:

This week alone, we've seen our membership double and £11,000 per day is being made in donations.
Thank you. pic.twitter.com/qktVIjvSl9

— Momentum (@PeoplesMomentum) July 4, 2016

There’s more here in an article on LabourList, which says that ‘Keep Corbyn’ rallies organised by Momentum over the weekend drew thousands, with 3,000 and 2,000 attending the protests in Liverpool and Manchester respectively.

Penzance, Exeter, Plymouth and Glasgow were the locations of smaller events, while further rallies are to be held in London and smaller towns this week.

There’s a bit more incoming for Jeremy Corbyn from another direction. The Campaign Against Antisemitism, a lobby group, has put out a statement describing his evidence earlier to the Commons home affairs committee as “inadequate.”

Jonathan Sacerdoti, the group’s director of communications, said: “Mr Corbyn insists that he is against antisemitism and all forms of racism, but his actions repeatedly leave Jewish people doubting his commitment and questioning his own actions. Mr Corbyn’s dire performance raised more questions than it answered.”

Updated

Four rooms away from the Tory hustings, it’s a predictably stormy parliamentary Labour party meeting in committee room 14.

It started with an address by the party’s deputy leader, Tom Watson, according to Paul Waugh of the Huffpost, who adds that Jeremy Corbyn and John McDonnell were not there.

Some more from him, and the Spectator’s Isabel Hardman

"We want our party back," one Labour MP said to applause at PLP.

— Paul Waugh (@paulwaugh) July 4, 2016

Lab MP tells me complaints about Corbyn front bench decision to abstain tonight on tribunal fees raised at PLP.

— Paul Waugh (@paulwaugh) July 4, 2016

Labour MP leaving PLP early says there wasn’t one speech in favour of Corbyn

— Isabel Hardman (@IsabelHardman) July 4, 2016

Updated

It’s getting rowdy - in a Conservative way - at the Tory leadership hustings, where Theresa May was said to have arrived fashionably late. The Spectator’s political editor, James Forsyth, tweets:

Tory MPs bang Windows, desks and doors as Theresa May arrives. Slightly surprised glass didn't break

— James Forsyth (@JGForsyth) July 4, 2016

Michael Crick of Channel 4 News has meanwhile totted up some of the estimates of where MPs’ support lies.

Latest #C4News tally of Tory MPs, partly based on others' work: May 122; Leadsom: 40; Gove 32; Crabb 24; Fox 13; not known 99

— Michael Crick (@MichaelLCrick) July 4, 2016

Updated

This is what the ConservativeHome editor Paul Goodman told me when I asked him about the accuracy of his Tory membership surveys.

@AndrewSparrow @ConHome It was right in 2005, but then had YouGov control panel. Confident that it gets trends, not that it gets results.

— Paul Goodman (@PaulGoodmanCH) July 4, 2016

That’s all from me for today. My colleague Ben Quinn is taking over now.

Updated

Leadsom overtakes May in ConservativeHome poll of Tory members

This is very big news: Andrea Leadsom has overtaken Theresa May in the ConservativeHome survey of party members about who should be the next leader.

This means it is a mistake to assume that May is the overwhelming favourite. A Leadsom victory has now become a real possibility.

Here is an extract from the ConservativeHome story about the survey.

When we last asked our usual next party Leader question in our regular monthly survey, Liam Fox and Andrea Leadsom were trailing Boris Johnson and Theresa May – who herself was the frontrunner by a whisker

What a difference six days can bring. Johnson is out, Gove is in, we have a final list of runners and riders – and Fox has gone one way, and Leadsom the other.

The former’s ratings are falling through the floor. He led this survey as recently as February with about a fifth of the vote. Now he is down from 13% last month to 5%.

Meanwhile, the latter’s score is soaring into the stratosphere up, up and away. She scoops 38% – a single point higher than Theresa May.

In any other month in living memory, 37% would have been enough to lead the survey. But not any more. This is because the contest that our party respondents want is a two-horse race – a final of Leadsom v May, who between them mop up 75% of the vote.

It is only a survey, not a proper opinion poll, but ConservativeHome has a wide readership among the party membership and its surveys, like this one, regularly attract more than 1,000 responses. This may not be a perfect guide to membership opinion, but it would be very surprising if the Leadsom surge it has identified is not real.

Updated

There are 3m non-British EU citizens living in the UK. According to the Office for National Statistics, this is where they are from:

1.46m (2.3% of the total UK population) were born in the EU14 group of countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Portugal, Republic of Ireland, Spain and Sweden

1.24m (1.9%) were born in the EU8 group of countries, which joined the EU in 2004: Czech Republic, Estonia, Poland, Hungary, Latvia, Lithuania, Slovakia and Slovenia

235,000 (0.4%) were born in Bulgaria or Romania - countries that joined the EU in 2007

92,000 (0.1%) were born in the remaining three countries of the EU - Malta, Cyprus and Croatia

Updated

The Tory leadership contender Stephen Crabb has released tax returns showing he earned just over £100,000 in the 12 months to April 2015, the Press Association reports. The work and pensions secretary had a combined income of £101,198 in the year to that date, a self certificate reveals. The document states he received benefits and expenses of £397 and, after allowable expenses of £633 were deducted, Crabb’s earnings are listed as £100,968.

Updated

According to ITV’s Robert Peston, the Labour leadership challenge may have been put off until Friday at the earliest.

Hearing no leadership challenge to @jeremycorbyn till Friday "at the earliest". Lab leadership has momentum (see what I did) from Chilcott

— Robert Peston (@Peston) July 4, 2016

Tory MPs are starting a hustings session with the five leadership candidates. It is taking place behind closed doors, but, in the age of Twitter and text messaging, that may not count for much.

Tory leadership hustings are about to begin at 1922 committee. Gove up first, then Fox, May, Crabb, Leadsom.

— Emily Ashton (@elashton) July 4, 2016

Gove first up at Tory a leadership hustings, will have to contend with sone angry Boris Johnson supporters who are in no mood to forgive

— James Forsyth (@JGForsyth) July 4, 2016

Corbyn rejects Umunna's claim Momentum is 'a party within a party'

At the home affairs committee, Chuka Umunna, the former shadow business secretary and one of the many Labour MPs who does not support Jeremy Corbyn’s leadership, asked Corbyn if he agreed that Momentum should be shut down. He told Corbyn that, although there were some good people in Momentum, there were others “who do not have the best interests of the party at heart”. He went on:

[Many Momentum activists] have a history of campaigning against the Labour party, and still do. And yet they seek to influence the affairs and activities of the party. Indeed, staff at the Welsh Labour party HQ were told last Friday not to go to work because of fears for their safety after Momentum announced a demonstration outside the building. Frankly, Momentum is a party within a party posing as a movement, which is why many of our trade unions refuse to fund it.

Corbyn rejected this criticism. He told Umunna:

Momentum is a place where many people who have come into political activity for the first time, or returned to political activity, are activating themselves on housing issues, on transport issues, on wage issues, and many, many other issues. Surely that degree of engagement in political activity is a good thing?

Updated

Corbyn says he 'regrets' calling Hezbollah 'friends'

Jeremy Corbyn, the Labour leader, has been giving evidence to the Commons home affairs committee about antisemitism. You can watch the hearing here.

Here are the main points he has made.

  • Corbyn said he “regrets” referring to Hezbollah as “our friends”. He said that “with hindsight” he would not have used the phrase. It was “inclusive language” intended to bring people together, he said.
  • He rejected claims that he was fostering a culture in the Labour party that tolerated antisemitism. “I think that’s deeply unfair and deeply wrong,” he said. “It’s absolutely the last thing I would want to do.”
  • He said he was misquoted last week when he apparently compared Israel to Islamic State. He was making a point by drawing a parallel between Israel and Islamic states. It would have been better to have talked about Islamic countries.

I’m disappointed that some people decided to say I’d made an equation ... I do not make an equation in that way.

Updated

Here is the Times columnist Tim Montgomerie on Theresa May’s stance on EU nationals.

Having failed to back #Brexit, I suspect @TheresaMay2016 is attempting to compensate - but getting it badly wrong https://t.co/N5xkARM4sU

— Tim Montgomerie ن (@montie) July 4, 2016

Tory MPs protest about May's hardline stance on EU nationals

Many Conservative MPs have spoken out very strongly against the government’s stance during this UQ. David Cameron has ruled that he is not in a position to promise EU nationals living in the UK now that they will definitely be able to stay and that this is a matter for his successor. But this is a stance that Theresa May, the home secretary, has strongly backed, as she explained on Peston on Sunday yesterday. Asked what would happen to EU nationals living here, she replied:

What I’d say is that at the moment we’re still a member of the EU and the arrangements still continue so there is no change to their position currently. But of course as part of the negotiation we will need to look at this question of people who are here in the UK from the EU and I want to ensure that we’re able to not just guarantee a position for those people but guarantee the position for British citizens who are over in other member states, in other countries in Europe, and living there.

Asked if she wanted EU nationals in the UK and Britons living abroad to be able to stay where they were for ever, she replied:

Well, nobody necessarily stays anywhere for ever … What’s important is there will be a negotiation here as to how we deal with that issue of people who are already here, and who have established a life here, and Brits who’ve established a life in other countries within the European Union.

May’s position puts her at odds with all the other Tory leadership candidates. Andrea Leadsom said today EU nationals living in the UK should not be “bargaining chips”. Michael Gove’s campaign has said EU nationals would not have to leave.

The residency rights of EU citizens living in the UK should not be put in doubt. @Gove2016 is clear that they are valued members of society

— Nick Boles (@NickBolesMP) July 3, 2016

Stephen Crabb has said the same.

I would allow EU citizens already in UK to continue their lives here, and expect same for Brits in EU. People are not bargaining chips

— Stephen Crabb (@scrabbmp) July 3, 2016

And Liam Fox said today he wants EU nationals in the UK to stay. (See 12.23pm.)

In the Commons many Tory MPs spoke out against the Cameron/May position, including: Sir Bill Cash, who said it was “wholly inappropriate”; Sarah Wollaston; Crispin Blunt; Andrew Tyrie, who said allowing EU nationals to stay was “the only ethical position”; Anne Main, who said May had made a “catastrophic error of judgment” and Christopher Chope.

Afterwards Labour’s Andy Burnham tweeted:

Never seen that before. Not one MP on either side of the House supported the Govt. Theresa May's stance on EU nationals won't last the week.

— Andy Burnham (@andyburnhammp) July 4, 2016

Updated

Ed Miliband, the former Labour leader, told MPs in response to the UQ on EU nationals that “no sane or fair government” would contemplate telling EU nationals living in the UK that they would have to leave. That meant threatening to remove them would be “incredible” as a negotiating position, he said. He said the government was “causing untold fear and misery” and that it should clarify the position and promise EU nationals they can stay.

Ed Miliband in Parliament: No "sane or fair" government would contemplate deporting EU nationals in UK pic.twitter.com/6XnpraVCne

— Sunny Hundal (@sunny_hundal) July 4, 2016

Updated

Burnham accuses Theresa May of creating uncertainty for 3m EU nationals

Andy Burnham, the shadow home secretary, told MPs in the UQ on EU nationals that his wife was Dutch and that their three children were half Dutch. Referring to what Theresa May said on Peston on Sunday yesterday, he said May’s hint that EU nationals could be made to leave the EU was “quite threatening”.

So many British families are similar to ours, with relatives born in Ireland or other EU countries.

The 3m or so EU nationals living here are the fathers and mothers, aunties and uncles, grandmas and granddads of millions of British children.

To leave any uncertainty hanging over their right to be here is tantamount to undermining family life in our country - and that does not strike me as a very prime ministerial thing to do.

But it is what the home secretary did yesterday.

She said “people who have an established life here” would be part of negotiations with Brussels.

For people making a huge contribution to our society to be talked of as a bargaining chip is insensitive to say the least.

But when it is added with the comment that “nobody necessarily stays anywhere forever” it becomes quite threatening.

Burnham also said the government had reduced the county “to chaos”.

Finally, Mr Speaker, doesn’t the very fact that we are having to hold this debate today illustrate how flawed the Referendum campaign was?

Didn’t people have a right to know the answer to this crucial question before they went to vote?

Sending any EU nationals home has enormous implications for families, for public services, for the economy.

So why on earth did the government instruct civil servants not to carry out any contingency planning on the implications of Brexit?

Wasn’t that the very height of irresponsibility? And hasn’t it left us with “neither compass nor chart” as Lord Hennessey has said?

This Conservative party has reduced our country to chaos and created uncertainty being felt in every family.

If the home secretary wants to be the person to lead us out of it, she needs to have the courage to come to this House and clear up her own mess.

Immigration minister says it would be 'unwise' to promise EU nationals now they can stay in UK

Gisela Stuart, the Labour pro-Brexit MP, has just asked an urgent question about the status of EU nationals after Brexit.

James Brokenshire, the immigration minister, said EU nationals made an “immense contribution” to British life. There would be no immediate change to their status, he said. But he said David Cameron had decided that decisions about their long-term future will be something that the new prime minister will have to settle as part of the EU withdrawal negotiations.

He said that, while the government recognised the huge contribution made by EU nationals who are here, it would be “unwise” to promise them that they can stay now before the government has secured assurances from EU countries about the rights of British nationals living in their countries. He also said that if the UK did make such a promise now, that might encourage more EU nationals to come to the EU.

In response, Stuart said that was not good enough. People should not be used as “bargaining chips”, she said.

Updated

Duncan Smith says civil servants should not brief against Tory leadership candidates

According to the Financial Times, Treasury officials have been briefing against Andrea Leadsom, the Conservative leadership candidate. Two of them have criticised her performance as a Treasury minister. Here is an extract from Henry Mance and George Parker’s story.

[Leadsom’s] one-year stint from 2014-15 at the Treasury as City minister was seen inside 1 Horseguards Road as ‘a disaster’ by one official. ‘She was the worst minister we’ve ever had.’ Unlike Ms May, she has also not held down a cabinet job.

Ms Leadsom’s allies say that Mr Osborne blocked her promotion to the cabinet and after the last election the chancellor asked for her to be moved out of the Treasury. She was transferred by David Cameron to the energy department.

‘She found it difficult to understand issues or take decisions,’ said another Treasury official. ‘She was monomaniacal, seeing the EU as the source of every problem. She alienated officials by continually complaining about poor drafting.’

Iain Duncan Smith, the former work and pensions secretary who is supporting Leadsom, was asked about this on the World at One. He said civil servants should not be interfering in the contest. He told the programme:

You always get silly civil servants who have got a grudge against somebody briefing against them – it happens to every single minister. I have one single message to them: they will do as they are told as and when the new government gets into place and I would be very grateful if civil servants will not try to interfere in the course of this. You get one person briefing this – you get plenty of other people that I’ve met from the Treasury who found her time there very helpful.

Duncan Smith also said Leadsom was a “remarkable combination of compassion and of clear-headed thinking”, which was why he was excited about her candidature.

Updated

Here is the Ukip MP Douglas Carswell explaining why he tweeted a smiley face emoticon after hearing that Nigel Farage had resigned.

Carswell asked about smiley face tweet after Farage’s resignation

The Lib Dem foreign affairs spokesman Tom Brake has called on Nigel Farage to resign as an MEP following his resignation as Ukip leader. Brake said:

Nigel Farage has spent years attacking the so-called Brussels gravy train while doing his best to cash in on EU taxpayer-funded expenses. This rank hypocrisy has to end. It’s high time he did the honourable thing and resigned as an MEP and stopped milking taxpayers to push his divisive agenda.

Updated

It is a bit surprising to say the least that Lord Trimble has come out to back Michael Gove in the Tory leadership election. (See 1.46pm.) In his remarks confirming support for Gove, the Nobel peace prize winner mentions that he knows a thing or two about negotiations. What Lord Trimble is referring to were the marathon discussions over Holy Week 1998 culminating in the Good Friday agreement peace settlement in his native Northern Ireland.

The irony regarding Gove is that at the time the future candidate to be prime minister was an ardent opponent of the Good Friday accord and urged unionists to reject it in the May referendum to endorse the deal. Trimble urged unionists to embrace the agreement but found no support on the rightwing end of what used to be known as Fleet Street.

Gove in his newspaper columns and Charles Moore, the then editor of the Daily Telegraph, were one of many thorns in Trimble’s side as he sought to maintain mainstream unionist support for the Good Friday agreement. Indeed Gove, Moore and others on the Conservative right were aligned with Trimble’s then nemesis, the Rev Ian Paisley on the no side.

Updated

Angela Eagle’s resignation as shadow business secretary last week meant she lost her place as one of the frontbench representatives on the party’s national executive committee. As the New Statesman’s George Eaton reports, she has been replaced by Jon Trickett, a supporter of Jeremy Corbyn. Trickett is shadow lord president of the council and the party’s campaigns and elections director.

Corbyn ally Jon Trickett has replaced Angela Eagle as a frontbench rep. on the NEC.

— George Eaton (@georgeeaton) July 4, 2016

Corbyn says he is carrying on as Labour leader

Jeremy Corbyn has issued an appeal to the Labour party to unite. Echoing the Beatles, he says the party needs to come together, now. He also says he is carrying on.

After the events of the past week, I wanted to talk directly to Labour Party members.https://t.co/mmLLLCIsL5

— Jeremy Corbyn MP (@jeremycorbyn) July 4, 2016

Here are the key points:

  • Corbyn says he is carrying on as Labour leader.

Only nine months ago I was very honoured to be elected leader of our party with 60% of the votes. I have a huge responsibility. I am carrying out that responsibility. And I’m carrying on with that responsibility.

  • He urges the party to unite.

I want to reach out to all our members, to all our supporters, to all our trade union affiliates, and to my colleagues in parliament – come together, now, to oppose this Tory government.

  • He says the party has achieved victories under his leadership.

Since my election as leader of our party last year, we’ve won every parliamentary byelection, some with vastly increased majorities. Two-thirds of our supporters voted to remain in the European Union. And we overtook the Tories in the local government elections. We forced them back on tax credits, forced them back on police cuts, forced them back on personal independence payments for those with disabilities, forced them back when they tried to academise every school in the whole county. When we do things together, we are very strong.

  • He says the Labour membership has increased by more than 60,000 in the past week.

Updated

Here’s a Guardian video with a clip from Liam Fox’s campaign launch.

Liam Fox launches Conservative leadership bid

Responding to Andrea Leadsom’s statement that she committed to giving EU citizens already living and working in the UK indefinite leave to remain, Theresa May’s team said that she wanted to make sure that EU nationals who were already in Britain could stay, arguing that the country was open and welcoming.

They suggested that May’s comments made clear that she expected that to happen. But they suggested that other candidates making promises were taking a risk with their negotiating position, and could jeopardise the rights of Britons living in countries such as Spain.

May thinks this will be a highly complex negotiation, and doesn’t want to make rash decisions, her team says.

Lunchtime summary

  • Christine Lagarde, head of the IMF, has said Brexit could cost the UK up to 4.5% of GDP by 2019. (See 2.05pm.)
  • Liam Fox has said Britain should leave the European single market if it is the price for ending free movement of EU citizens and controlling immigration. Giving a speech on why he should be Conservative leader, Fox said:

I do not believe that you need to be in the single market to sell into the single market.

And if the price of the relationship with the single market is free movement of people, it’s a price I’m not willing to pay.

Updated

Here is more from Douglas Carswell, the Ukip MP, on Nigel Farage. Carswell told the BBC’s Daily Politics that Farage’s rhetoric on immigration went too far. He told the programme:

We went too far, and I criticised it when we went too far. And it’s not just morally wrong, it’s electorally disastrous. This is a decent, generous country.

People have a legitimate right of feel a sense of anger with their politicians but the answer to that is not to play on people’s fears and anger but to promise the hope of something better. I never want to be in a party where the archbishop of Canterbury feels compelled to criticise some of the things that people say.

Updated

Here is how the singer Charlotte Church responded to the news that Nigel Farage is resigning as Ukip leader because he wants his life back.

I want my fucking European Union back you piece of shit!!!!!! https://t.co/XKE65GkvqT

— Charlotte Church (@charlottechurch) July 4, 2016

IMF boss Christine Lagarde says Brexit could cost UK up to 4.5% of GDP by 2019

Christine Lagarde, the head of the IMF, has told Le Monde that UK GDP could lose between 1.5% and 4.5% by 2019 because of Brexit, depending on what type of trade deal is struck.

Lagarde said there was a “real uncertainty” surrounding what conditions there would be for trade deals with the EU after a Brexit. She said a Norway-style agreement would be the “favourable” and “economically reasonable” choice but she said this choice would be “politically difficult, because the country would have all the obligations of an EU member, notably free movement, but no rights”.

She said the worst scenario for Britain would be a as non-EU country along World Trade Organisation rules. She said in that case, British GDP could lose between 1.5% and 4.5% by 2019, compared to what it would have been if it had stayed in the EU. “But we don’t have the slightest idea of the timeframe, nor the result of negotiations between London and the EU,” she added. “Uncertainty will be the key word for a certain time.”

Updated

There are two Brexit-related urgent questions in the Commons this afternoon.

UQs: 1.@GiselaStuart - Legal status of EU nationals living in UK 2.@johnmcdonnellMP - Govt surplus target & corporation tax

— Labour Whips (@labourwhips) July 4, 2016

Updated

Momentum says it is raising £11,000 a day to help it defend Corbyn

Momentum, the pro-Labour organisation for Jeremy Corbyn supporters, says that more than 25,000 people have taken part in pro-Corbyn protests in recent days. It also says that it is raising more than £11,000 a day to help it defend Corbyn and that it has doubled its membership in the past week. Here is an extract from the news release it has sent out.

Over the past week, Momentum members across Britain have mobilised in support of Jeremy Corbyn and the politics he represents. From Penzance to Leeds; Exeter to Glasgow, over 25,000 people have taken to the streets to demand change.

With over 30 rallies and public meetings across the country, the determination of British people to transform society is stronger now than ever.

The anti-democratic attempted coup against Jeremy Corbyn and the Labour party membership has seen people flock to the Labour party in near-unprecedented numbers to grow the movement for a more democratic and equal society. It has been reported that over 60,000 have joined in the past week. Momentum has witnessed a membership surge too, doubling its membership to 12,000 in the past week.

A wave of small donations adds to Momentum’s membership surge. Together, around 1,500 people are giving over £11,000 per day to the organisation.

Updated

Lord Trimble, the former Ulster Unionist leader and Northern Ireland first minister who is now a Conservative peer, is backing Michael Gove for the leadership. Trimble said:

This is a challenging period for the United Kingdom. The government’s most important task will be negotiating a new relationship with our European allies and seeking opportunities worldwide. I’ve been involved in critical negotiations in the past, I know what it takes and Michael Gove has it. He is without doubt the most qualified candidate to be our next prime minister.

Unionist objections appeared to have sunk the idea of an all-Ireland-wide forum to be established to negotiate with Brussels following the Brexit vote.

At a summit in Dublin Castle today, Irish premier Enda Kenny confirmed that the cross-border north-south ministerial council did not put forward the creation of the forum.

Acknowledging the Democratic Unionist Party’s misgivings over such a forum given its all Ireland dimension, Kenny said: “It wouldn’t work if it didn’t have buy in for everybody.”

The Taoiseach added: ‘My impression was that you could have an island conversation not as a statutory assembly or forum.”

Northern Ireland’s First Minister and DUP leader Arlene Foster said: “There was no proposal … there was nothing to be rejected.”

Foster said the plan for a forum, which was raised by the Irish government at the weekend, was not even discussed with her.

Martin McGuinness, the Sinn Fein deputy first minister of Northern Ireland, said he still believed an all Ireland forum on the European issue was “still a good suggestion.”

McGuinness also denounced “Ukip fascists and the loony right of the Conservative Party” for being responsible for Brexit and the departure of David Cameron from Downing Street.

Here’s the verdict on Andrea Leadsom’s speech from the Guardian’s panel, featuring Jonathan Freedland, Simon Jenkins and Deborah Orr.

Jonathan thinks she could win. Here’s an extract from his article.

Leadsom staked out more terrain on the left. Workers’ rights previously guaranteed by the EU would be safe and even “enhanced”. Top boardroom pay was often undeserved and needed to be reined in. If there was money to give away, it would go on tax cuts for the lowest paid: “The richest people in Britain will not be my priority.”

Sure, some of that may raise a few eyebrows, given that Leadsom, a former banker, voted against a tax on bankers’ bonuses, the proceeds of which would have helped young people get into work and contributed towards the building of affordable homes. But it was canny positioning. Keen to avoid being branded the Ukip candidate to succeed David Cameron, she sought to be the One Nation candidate instead.

Will it work? It shouldn’t. Leadsom has a tenth of May’s experience and bears the mark of Cain formed by the words “former banker”. But in every contest since 1997, Tory members have chosen the candidate perceived as most hostile to the EU – regardless of electoral appeal or experience. If that pattern holds, Leadsom will be our next prime minister.

Nigel Farage resigns as leader of Ukip: ‘I want my life back’

My colleague Marina Hyde has written about the resignation of Nigel Farage and she is on blistering form. Here’s an excerpt.

In his Telegraph column today, Boris Johnson declared that David Cameron needs a plan to stop this political Diana moment. That’s a bit like the drunk chauffeur and 15 French paparazzi demanding to know why the Queen is still at Balmoral. But Farage has got a plan, he wanted us to know, which amounts to: let’s get the hell on with it. Though he was needily coy as to a potential role for himself in the political negotiations. “We need a team of negotiators that includes figures from across the political spectrum,” he kept stressing, “which reflects where that Brexit vote came from.” Which was, in case you missed it, from “the Ukip people’s army”, and “Ukip’s messages”.

It is fair to say Nigel remains unaware of the difference in calibre between himself and a figure such as Theresa May (whatever your views on her). You sense he will be condemned to wonder furiously why the call to the top table doesn’t come, much as Liz Hurley may enquire furiously of her agent why she has been overlooked again for a role in favour of Meryl Streep.

Here is the article in full.

Updated

Suzanne Evans, the former Ukip deputy chairman, has just told Sky News that she can’t stand for Ukip leader because she is currently suspended from the party, but that she would like to stand if she could. This is from Sky’s Harry Carr.

Suzanne Evans says wants to run for leader - currently banned after falling out with Farage. "We have to clean up our act, broaden appeal"

— Harry Carr (@harrydcarr) July 4, 2016

Lord Lawson backs Michael Gove for Tory leader

And Lord Lawson, the Conservative former chancellor, has announced he is backing Michael Gove for leader. In a statement Lawson said:

The country will require strong leadership as we navigate our departure from the European Union and chart our new future. I believe that Michael Gove is the best candidate to provide it.

Michael led from the front in the referendum. He campaigned with patriotic conviction and made the case with intellectual authority. We could not have achieved victory without him.

He is also a formidably successful cabinet minister. I know from my own experience how tough it is to drive reform through Whitehall. Michael took on the huge challenge of reforming our education system with clarity and conviction – and with great success.

Michael also has a good understanding of both economic and foreign policy. He is the best-equipped candidate for prime minister.

Updated

David Davis backs Theresa May for Tory leader

Theresa May has announced that David Davis, the Tory backbencher and David Cameron’s main rival for the leadership in 2005, is backing her leadership bid. Previously Davis was backing Boris Johnson.

I'm delighted to have the support of @DavidDavisMP for my campaign to provide the strong, united leadership our country needs. Thank you -TM

— Theresa May (@TheresaMay2016) July 4, 2016

Liz Truss, the environment secretary, and Sayeeda Warsi, the former Conservative chair, are also backing May.

Delighted to have the support of @TrussLiz and @SayeedaWarsi – as just announced on @VictoriaLIVE Sign up too at https://t.co/JTX9BojJuZ

— Theresa May (@TheresaMay2016) July 4, 2016

Updated

Carswell rules out standing for the Ukip leadership

Douglas Carswell has ruled out standing for the Ukip leadership. “I’m certainly not going to stand to lead Ukip,” he told the BBC today.

(That is no great surprise. Carswell, Ukip’s only MP, once said that having him as leader would be “bad for me, bad for my family and disastrous for the party”.)

In his BBC interview Carswell also admitted there were “differences of opinion” between him and Farage.

I want to be generous about Nigel. For 20 years he ploughed a lonely furrow and he helped ensure that we got the referendum. But clearly there are differences of opinion between him and me as to how we should best win the referendum. By being generous and upbeat and internationalist and optimistic, Vote Leave won that referendum. I think it’s right that Nigel takes some credit for holding the referendum and I wish him well.

And Carswell said he thought Ukip should not be involved in the EU withdrawal negotiations. Farage thinks Ukip should be involved. (See 10.17am.) But Carswell said:

It’s important, I think, that the people who led the Vote Leave campaign, people like Chris Grayling, Michael Gove, Daniel Hannan, Matthew Elliott, they are the people who need to be informing the Brexit negotiations. The leadership, or the former leadership of my current party, took a conscious decision not to be part of that. I think it’s very important that people watching this in continental Europe recognise that actually when they negotiate, they’re negotiating with people who want good relations. We want this to work, we want to be good friends and good neighbours.

I’ve taken the quotes from PoliticsHome.

Q: Were George Osborne and Theresa May right to abandon the goal of balancing the budget by the end of the parliament?

Fox says he thought it was going to be impossible to balance the budget by 2020 anyway. Brexit has been used as an excuse. But is it right for any country to spend at a level that increases debt for the next generation. We are spending too much, he says. The deficit has come down from 11% of GDP to 3%, he said.

If the government does not deal with this issue, it will create an imbalance between generations, he says.

And that’s it. The Q&A is over.

Q: Who will you support if you get knocked out?

Fox says he does not intend to get knocked out. And he does not answer hypothetical questions.

Q: Would you keep workers’ rights at the level they are now?

Fox says there are no plans to water down workers’ rights after Brexit.

Q: What is your reaction to what Philip Hammond said today about the need to compromise over single market access?

Fox says he would not compromise over restricting free movement in order to obtain single market access. But he thinks EU states would not want to restrict the UK’s access to the single market.

Q: Would you guarantee that EU nationals already living here can stay?

Fox says he wants them to stay. That would be sensible. He accuses remain supporters of scaremongering on this point.

Updated

Fox's Q&A

Fox is now taking questions.

Q: What is your reaction to Nigel Farage’s resignation?

Fox says Ukip contributed to the climate that led to the referendum taking place. But he thinks that, now Britain has voted to leave the EU, there is no need for Ukip any more.

Updated

Liam Fox's speech

Liam Fox, the former defence secretary, is now giving a speech on why he should be Conservative leader.

First day as lobby corr for @PA. Waiting for Liam Fox in the same room Gove launched his leadership bid - more empty pic.twitter.com/2P2g8v0T16

— Arj Singh (@singharj) July 4, 2016

Liam Fox being introduced by the one MP who came to support him - Robert Goodwill pic.twitter.com/2o6e6q6VTl

— Arj Singh (@singharj) July 4, 2016

Updated

Andrea Leadsom's speech - Verdict from the Twitter commentariat

Here is some reaction to Andrea Leadsom’s speech from political journalists and commentators on Twitter. Quite a few remain unconvinced.

From the BBC’s Laura Kuenssberg

They love Leadsom here - trad eurosceptic crowd tho, can she appeal beyond this small (sweaty) room?

— Laura Kuenssberg (@bbclaurak) July 4, 2016

From the BBC’s Norman Smith

So @andrealeadsom pitch: I'm the true blue Brexiter; a Tory radical; and I won't boot out EU migrants

— norman smith (@BBCNormanS) July 4, 2016

From Huffington Post’s Paul Waugh

Leadsom bigging up her FreshStartGroup. I recall 1 Euroscep Tory MP (now on her team) telling me it was part of No10/FCO plot to stay in EU

— Paul Waugh (@paulwaugh) July 4, 2016

Note, Leadsom only referred to "billions" more for NHS. Not clear if all of the £350m or just £100m "per week". Esp given other pledges.

— Paul Waugh (@paulwaugh) July 4, 2016

From the Times’s Patrick Kidd

Of the four leadership launches I've seen, Leadsom and Gove have more vision; May standing on competence/experience; Crabb as fresh start

— Patrick Kidd (@patrick_kidd) July 4, 2016

Quite an impressive pitch by Leadsom. Positions herself as more than eurosceptic, lots on life chances, more houses, invigorating North etc

— Patrick Kidd (@patrick_kidd) July 4, 2016

From the Times’s Philip Collins

If Tory MPs want a wildly inexperienced, unproven entity to come from nowhere to be PM, Crabb is clearly better than Leadsom.

— Philip Collins (@PCollinsTimes) July 4, 2016

Any MP helping to make Andrea Leadsom PM is ridiculous. I'm not being rude about a talented candidate but she's nowhere close to ready.

— Philip Collins (@PCollinsTimes) July 4, 2016

From the Times’s Tim Montgomerie, founder of ConservativeHome

Very one nation speech from @AndreaLeadsom: says low-paid must be priority for tax cuts, CEO pay is out of control, workers rights are safe

— Tim Montgomerie ن (@montie) July 4, 2016

From the Guardian’s Paul Johnson

Leadsom makes big play limiting top pay. Odd because
she said 'we must nix bankers' bonus cap' and did this https://t.co/pyIXJu7h6o

— Paul johnson (@paul__johnson) July 4, 2016

From the New Statesman’s Jason Cowley

The Andrea Leadsom bandwagon just shows how hysterical our politics are.
One decent TV debate and she thinks she can be PM... come on!

— Jason Cowley (@JasonCowleyNS) July 4, 2016

From the Guardian’s Anushka Asthana

Striking thing about Leadsom's launch is that her support comes from right of party- lots of Brexiteers coming behind her

— Anushka Asthana (@GuardianAnushka) July 4, 2016

From CapX’s Iain Martin

I am a bit suspicious of all these Tory MPs who until three days ago never mentioned Leadsom now saying she is a genius.

— Iain Martin (@iainmartin1) July 4, 2016

From the Guardian’s Jonathan Freedland

Leadsom launches bid by attacking May from right *and* left. Tougher on Brexit, but to the left on EU migrants' right to stay, CEO pay etc

— Jonathan Freedland (@Freedland) July 4, 2016

From Mayorwatch’s Martin Hoscik

Suggestion: Boris would be delighted if the seemingly weak Leadsom became PM as he’d be able to squeeze her out in a couple of years time?

— Martin Hoscik (@MartinHoscik) July 4, 2016
Andrea Leadsom launches Tory leadership bid

Updated

Here is Iain Duncan Smith on why he is supporting Andrea Leadsom.

IDS: Andrea Leadsom is the real deal - I've never been so optimistic - policy is one thing, but she has the character

— Faisal Islam (@faisalislam) July 4, 2016

Here is Philip Hammond, the foreign secretary, criticising the law firm Mishcon de Reya for going to court to try to stop the government using article 50 of the Lisbon treaty to start the two-year EU withdrawal process without a vote in parliament. (See 7.09am.)

Philip Hammond dismisses Brexit legal challenge

Ministers from the Irish government and members of the Northern Ireland power-sharing executive are meeting in Dublin to discuss the implications of the Brexit vote on the island of Ireland. The Irish premier, Enda Kenny, has proposed creating an all-Ireland forum to respond to the challenges thrown up by the UK’s departure from the EU.

Such a proposal however is unlikely to win support from the main party in the coalition in Belfast, the Democratic Unionists.

It is the first time the North-South Ministerial Council has met since both the EU referendum and last May’s elections to the Northern Ireland assembly. The North-South body was established following the 1998 Good Friday agreement and meets every six months to discuss cross-border issues.

Updated

Here is Michael Crick’s latest tally of how many MPs the five Conservative leadership challengers have got supporting them.

Latest Crick tally of Tory MPs, mainly based on ITV, ConHome & Speccie tallies: May 110; Gove 31; Leadsom 30; Crabb 24; Fox 12; unknown 123

— Michael Crick (@MichaelLCrick) July 4, 2016

Leadsom says she is completely open. She has no allegiances to Ukip, she says.

Leadsom says her EU withdrawal negotiating team would come from the government. But it would consult.

Leadsom says she does not agree with what Philip Hammond said about how hard it would be for the UK to have access to the single market without accepting free movement. It would not be in the interests of other EU countries to impose tariffs, she says.

Leadsom says she wants the government to take a decision on Heathrow very soon.

Q: You say the rights of EU nationals living here should be respected. Does that mean people here now? Or people who come at any point up to EU withdrawal?

Leadsom says the government needs to get control of the number of people coming to the UK as soon as it can.

Updated

Leadsom says she backs entrepreneurialism. But she does not approve of people becoming rich on the back of poor performance.

Leadsom says she does not want an early election.

Leadsom says that in her 2013 speech, in which she warned of the dangers of Brexit, she said the status quo was not an option.

She says that, as head of the Fresh Start group (a group of Tory Eurosceptics), she studied the EU in more detail than anyone else. Seeing Sir Bill Cash in the audience, she corrects herself; she did not study it more than him, she says.

Q: Should the other Brexit candidates stand aside to ensure there is one Brexit candidate on the shortlist?

Leadsom says she does not think there should be a coronation. She thinks the next leader should be someone who sees the advantages of being outside the EU.

Updated

Leadsom's Q&A

Leadsom is now taking questions.

She says she is not setting a timetable for the EU withdrawal.

Andrea Leadsom's speech

Andrea Leadsom is giving a speech now saying why she should be Conservative leader.

Here are some key points.

Leadsom: result is final, must be respected, and I will respect it. UK will leave EU, freedom of movement will end, billions more for NHS.

— Faisal Islam (@faisalislam) July 4, 2016

I will keep Brexit talks as short as possible - @andrealeadsom

— norman smith (@BBCNormanS) July 4, 2016

Leadsom: negotiations as quickly as possible, not everything needs to be sorted out before A50 finishes

— Faisal Islam (@faisalislam) July 4, 2016

Leadsom: dedicated exit negotiators, will call on business, devolved administration

— Faisal Islam (@faisalislam) July 4, 2016

Leadsom msg to 48%: we haven't lost our senses, we've just rediscovered our freedom

— Faisal Islam (@faisalislam) July 4, 2016

Leadsom 'the richest people will not be my priority'

— Laura Kuenssberg (@bbclaurak) July 4, 2016

Excessive boardroom pay rises are unacceptable - @andrealeadsom

— norman smith (@BBCNormanS) July 4, 2016

Leadsom: will supercharge nothern powerhouse project - extra cash for Sunderland as they voted for Brexit.

— Theo Usherwood (@theousherwood) July 4, 2016

I will make a rapid decision on airport capacity says @andrealeadsom

— Isabel Oakeshott (@IsabelOakeshott) July 4, 2016

Key priority is housing says Leadsom, plus mentions airport expansion and says workers rights "protected and enhanced"

— Anushka Asthana (@GuardianAnushka) July 4, 2016

Leadsom: I commit today to guaranteeing the rights of our EU friends who have come here to live and work - no way they are bargaining chips

— Faisal Islam (@faisalislam) July 4, 2016
Andrea Leadsom: EU nationals in UK won’t be Brexit ‘bargaining chips’

Updated

Nigel Farage's resignation - Summary and analysis

Enoch Powell famously said all political lives end in failure. That turned out to be more accurate than his other most famous prediction, but Nigel Farage turns out to be a rare exception. It is very unusual to watch a politician resigning while being able to claim, with justification, that he has achieved his lifetime’s ambition.

Farage’s resignation means the three parties that achieved most votes in the 2015 general election are all in the midst of leadership contests or crisises. It also means that Ukip has a chance to recast itself under a new leader. This could lead to it finding itself marginalised, or it could lead to it becoming an even bigger threat to the main parties, particularly Labour in the north of England, by the time of the next general election.

Here are the key points from Farage’s announcement.

  • Nigel Farage said he was resigning because he wanted his life back.

I came into politics from business because I believed that this nation should be self governing. I have never been and I have never wanted to be a career politician.

My aim in being in politics was to get Britain out of the European Union that is what we voted for in that referendum two weeks ago.

And that is why I now feel that I have done my bit, that I couldn’t possibly achieve more than we managed to get in that referendum. And so I feel it’s right that I should now stand aside as leader of Ukip.

I will support the new leader. I will watch the re-negotiation process in Brussels like a hawk and perhaps comment in the European parliament from time to time.

During the referendum campaign I said I want my country back, and I’m saying today I want my life back. And it begins right now.

  • He said Ukip could do even better in the 2020 election if the government tried to water down the Brexit result and Labour continued to alienate its core supporters.

Ukip is in a good position and will continue, with my full support, to attract a significant vote. Whilst we will now leave the European Union, the terms of our withdrawal are unclear. If there is too much backsliding by the government and with the Labour party detached from many of its voters then Ukip’s best days may be yet to come.

  • He played down the prospect of standing again as an MP.
  • He said the new Ukip leader would be in place in time for the autumn conference. But he refused to back any particular candidate. And he said he did not know if Suzanne Evans, who is currently suspended, would be allowed to stand.
  • He said he wanted to see the Conservative party led by a Brexiter – but he did not back any of the three leave candidates in the contest.
  • He ruled out forming a new party with Arron Banks, the Ukip donor.
  • He said, if there was an early election, he would not want to see Ukip standing against Brexit MPs. And he said that in the long term he thought there could be some re-alignment in British politics, or the emergence of new parties.
Nigel Farage resigns as leader of Ukip: ‘I want my life back’

Updated

Farage's resignation - Reaction from the Twitter commentariat

Here is some Twitter reaction to the resignation of Nigel Farage.

From Rob Ford, a politics professor and co-author of the award-winning Revolt on the Right book about Ukip

If UKIP replace Farage with someone less polarising & with broader appeal, then both Lab & Con with have major headache on their hands

— (((Rob Ford))) (@robfordmancs) July 4, 2016

From Matthew Goodwin, another politics professor and Ford’s co-author

Senior Ukipper talking about "dream ticket" of leader/deputy to target Labour in north and Tory Leavers in the south.

— Matthew Goodwin (@GoodwinMJ) July 4, 2016

.@toadmeister It will be Nuttall, Woolfe or James in my view. Ukip clearly aware of need to exploit Labour crisis.

— Matthew Goodwin (@GoodwinMJ) July 4, 2016

From the journalist Toby Young

.@Nigel_Farage quitting is bad news for @UKLabour. His ideal successor, from every point of view, would be @GiselaStuart.

— Toby Young (@toadmeister) July 4, 2016

From the Guardian’s Owen Jones

Not celebrating Nigel Farage's resignation. UKIP could become a greater threat in northern Labour seats under a new leader.

— Owen Jones (@OwenJones84) July 4, 2016

From the Guardian’s Deborah Orr

So, basically, very few of the people who engineered #Brexit are going to be around to sort out the crisis they precipitated. #Farage

— Deborah Orr (@DeborahJaneOrr) July 4, 2016

This is a point that many people are making on social media.

From Laurence Janta-Lipinski, a YouGov pollster

#Farage resigning does one of two things;
Loses their figurehead & the support he brings
Allows UKIP to attract support he couldn't reach

— L Janta-Lipinski (@jantalipinski) July 4, 2016

The future of Britain could well rest on whichever of these comes to pass #farage https://t.co/Izam6u4feX

— L Janta-Lipinski (@jantalipinski) July 4, 2016

Farage's resignation statement

Here is the statement that Nigel Farage has released.

I have decided to stand aside as leader of Ukip. The victory for the leave side in the referendum means that my political ambition has been achieved. I came into this struggle from business because I wanted us to be a self-governing nation, not to become a career politician.

Ukip is in a good position and will continue, with my full support to attract a significant vote. Whilst we will now leave the European Union the terms of our withdrawal are unclear. If there is too much backsliding by the government and with the Labour party detached from many of its voters then Ukip’s best days may be yet to come.

Updated

Q: Philip Hammond says the government will have to make a trade off between cutting immigration and getting access to the single market? Who would get the best deal - Andrea Leadsom or Michael Gove?

Farage says the key thing is to got a Tory leader who is a Brexiteer.

But he says Hammond was “totally gutless” to suggest he would give in before the withdrawal negotiation with the EU even starts.

And that’s it. The Farage speech and Q&A are over.

I will post a summary soon.

Q: Will Suzanne Evans be able to stand, given she is currently suspended?

Farage says he does not know. He does not get involved in party disciplinary matters, he says.

Farage says a new leader will be in place by the autumn conference.

Q: What regrets do you have from your time as leader?

Farage says the only people who make mistakes are people who do things. And he does things. He has made mistakes. But Britain is leaving the EU, and so he has no regrets.

Q: Will you stand again for parliament?

Farage says that is not top of his bucket list.

  • Farage plays down the prospect of standing again as an MP.

Q: If the party asks you to come back, will you come back?

Farage says he will part of the 2020 campaign. But he is not a career politician. He came into this because he wants his country back. He has got it back.

Q: What is your response to Douglas Carswell’s reaction to your news?

😎

— Douglas Carswell MP (@DouglasCarswell) July 4, 2016

Farage says Carswell does not often smile, so it’s good to see him pleased.

Updated

Q: Are you putting yourself forward to be part of the Brexit negotiating team?

Farage says he is not putting himself forward. But he has expertise, and he is available if people want him.

Q: What do you think of the attacks on people like Poles since the referendum?

Farage says some appalling things have been said. But he says bad things have been done on both sides.

Farage says he would not put too much money on Douglas Carswell being the next Ukip leader.

Q: Will you serve out your remaining two years as an MEP?

Farage says he hopes the next prime minister will complete the job in less than two years. Then the Ukippers will have been the turkeys that voted for Christmas.

Q: Do you think the tone you took in the European parliament last week will help the negotiation process?

Farage says he was being shouted down. It was so bad that Martin Schulz, the president of the parliament, intervened to help him, which normally never happens. So he was only giving MEPs a taste of what they gave him.

And it is important not to be weak in the negotiations, he says.

He says the UK has a strong negotiating position. He says countries without trade deals with the EU sell goods worth £1.5 trillion into Europe.

Q: Some leave campaigners have been claiming you had nothing to do with leave winning? And they say it was not about immigration. What do you think about that?

Farage says that is what career politicians do.

There would not have been a referendum without Ukip, he says.

If it had not been for Ukip’s willingness to take on issues that people at Notting Hill dinner parties find tricky, leave would not have attracted all the support it did.

Q: Who should be the next Ukip leader? Douglas Carswell?

Farage jokes that he likes that idea. (He and Carswell are fierce opponents.)

He says he will not express a view. May the best man or woman win.

Q: Who do you want to see as Tory leader?

Farage says it has to be a Brexit leader. But he says just because the Ukip donor Arron Banks is backing Andrea Leadsom, that does not mean he is.

  • Farage says new Tory leader must be a Brexiter - but he does not back any particular candidate.

Q: Will you form a new party with Banks, as he has suggested?

Farage says Banks does not speak for him.

He says he will continue supporting Ukip. And he will continue to lead the Ukip group in the European parliament.

  • Farage rules out forming a new party.

If the government backtracks over withdrawal, Ukip’s best days could be ahead.

Q: Would you like to cooperate with other parties?

Farage says, if there were an election this autumn, he would not want Ukip to stand against Brexit MPs.

  • Farage says, if there is an early election, Ukip should not stand against Brexit MPs.

But he says he thinks in the long term new parties could emerge.

Q: What role do you want Ukip to play in the withdrawal negotiation?

Farage says he wants this to be a cross-party effort. And he says Ukip has expertise that it can offer.

Updated

Farage's Q&A

Farage is now taking questions.

He says he is pleased he changed his mind after he resigned following the election last year. But he will not change his mind again.

  • Farage says this time he won’t change his mind about resigning.

Farage says during the campaign he said he wanted his country back.

But now he is saying he wants his life back.

And that’s it.

Farage announces he is resigning as Ukip leader

Farage is now talking about his future.

He says he now feels he had done his bit. He could not possibly do more.

  • Farage announces he is resigning as Ukip leader.

Updated

Farage says leave would not have won without Ukip.

He says Ukip can expand.

And, given the crisis in the Labour party, its best chance lies in taking votes from Labour, he says.

He says if the withdrawal deal is a disappointment, and Labour remains in crisis, Ukip could do very well in 2020.

Farage says leave won the referendum. But leave campaigners now need to focus on getting the deal they want.

Farage: "We've won but I'm less certain of what deal we will get with EU. Need a new PM who won't sell us out who understands business"

— Matthew Goodwin (@GoodwinMJ) July 4, 2016

Farage says it is important to ensure that the prime minister does not take us into the single market.

Farage warns of a Govt "sell out" over free movement and access to single market

— norman smith (@BBCNormanS) July 4, 2016

Nigel Farage's speech

Nigel Farage, the Ukip leader, is giving a speech now. It is being described as “a speech setting out in detail Ukip plans for the coming months as the country moves forward after the momentous EU referendum result”.

There is a live feed at the top of the blog.

Updated

Liz Truss, the environment secretary, is going to confirm for Theresa May. This is a blow for Michael Gove as Truss was originally lined up to support Boris Johnson (when Johnson and Gove were a joint ticket), partly because she worked with Gove at the Department for Education. Clearly Gove’s handling of all this has pushed her elsewhere

McDonnell accuses Osborne of wanting to turn UK into 'a giant tax haven'

John McDonnell, the shadow chancellor, has condemned George Osborne’s proposal to cut corporation tax to below 15%. In a statement he said:

This is a futile and costly gesture from a lame-duck chancellor who is clean out of ideas after being forced to abandon his failing flagship austerity programme. George Osborne is already set to slash corporation taxes to among the lowest rate in the G20.

But despite falling corporate tax rates UK investment has shrunk in both of the last two quarters even with record profits and UK companies sitting on a £700bn cash pile.

Instead of turning the whole country into a giant tax haven and playground for the ultra-rich, the chancellor needs to get a grip on the real problems by reversing planned cuts to government investment and bringing forward shovel-ready projects for those areas worst affected by the investment slump and the shock of Brexit.

The BBC’s Norman Smith is reporting that Jeremy Corbyn’s critics are now prepared to wait until after the Chilcot report is published on Wednesday before triggering a leadership challenge. (See 9.18am.) But in his column in the Herald, Alex Salmond, the former Scottish first minister, suggests the coup against Corbyn began last week precisely because his opponents wanted him out before Chilcot. Here’s an extract.

I have been puzzling as to exactly why the parliamentary Labour party chose this moment to launch their coup against Jeremy Corbyn and just what explains the desperation to get him out last week. It can hardly be because of a European referendum where Corbyn’s campaigning, although less than energetic, was arguably more visible than that of, say, the likely big political winner Teresa May?

Would it not have been more sensible and certainly less damaging simply to put up another candidate against Corbyn and argue the case to the country? It certainly would have made for less of a pantomime and, with both establishment parties holding simultaneous leadership elections, it would have minimised the damage. So what exactly was the urgency in getting the removal vans to visit the Corbyn’s office last week?

I had a conversation on exactly this point with veteran Labour firebrand Dennis Skinner. He answered in one word “Iraq”. The Skinner line is that the coup was timed to avoid Corbyn calling for Blair’s head next Wednesday from the dispatch box. Indeed, many would say that when Corbyn stated that he would be prepared to see a former Labour prime minister tried for war crimes then he sealed his fate as leader of the parliamentary Labour party.

Updated

Eagle says she will stand against Corbyn for the Labour leadership if he does not back down 'soon'

Angela Eagle, the former shadow business secretary, has confirmed this morning that she will mount a leadership challenge against Jeremy Corbyn if he does not respond to his critics (by resigning, she implies, although she does not actually say that.) This is what she told reporters outside her home this morning.

[Corbyn] is not properly engaged with even the deputy leader of the party who is elected with a mandate too. It is now time that he did so. There are many people – MPs, party members up and down the country – asking me to resolve this impasse, and I will, if something is not done soon ... I have the support to run and resolve this impasse and I will do so if Jeremy does not take action soon.

But the BBC’s Norman Smith reports that Corbyn’s critics say they are prepared to wait until after Wednesday, when Corbyn will be responding to the publication of the Chilcot report into the Iraq war, before taking action.

Updated

Crabb proposes using borrowing to create £100bn 'Growing Britain Fund'

It was a shame that John McDonnell was not asked about a plan being proposed by Stephen Crabb, the work and pensions secretary, who is one of the five candidates for the Conservative leadership. It would have been nice to hear McDonnell’s reaction because Crabb’s plan sounds like undiluted Corbynism.

As the BBC reports, Crabb is proposing to create a £100bn “Growing Britain Fund” that would use government borrowing to fund infrastructure investment. Crabb would put money into projects including flood defences, a national fibre-optic broadband network, Crossrail 2, social housing, school buildings and new prisons, and he and his ally Sajid Javid, the business secretary, believe this would create “hundreds of thousands” of new jobs.

Updated

Good morning. I’m Andrew Sparrow, taking over from Claire.

John McDonnell, the shadow chancellor, is on the Today programme. He says Jeremy Cobyn is a winner. He has won every byelection Labour has fought since the election, and held councils in the local election that Labour was expected to lose. He says he is asking people in Labour to “stand back” and have a proper, rational conversation about the future.

Q: You talk softly. But your message is unbending. You don’t mind if you cannot fill shadow cabinet posts. You are not prepared to compromise.

McDonnell says that is not true. He wants to hear what people’s concerns are.

Q: Their concern is that Corbyn is a loser ...

McDonnell says they are wrong. His record shows that. He wants to hear what other worries are.

Q: Labour figures say they cannot get to see Corbyn.

That is not true, says McDonnell. Corbyn has an open-door policy. He will meet any MPs.

Q: So Angela Eagle can have a one-to-one meeting with Corbyn? And Tom Watson? (There have been reports saying Corbyn is refusing to meet his shadow cabinet critics, or refusing to meet them without key advisers present.)

McDonnell says of course Corbyn will be willing to hold meetings with people like Eagle.

  • McDonnell says Corbyn is willing to have one-to-one meetings with his shadow cabinet critics.

Updated

While in the UK legal moves and opinion columns ponder the possibility of not triggering article 50, EU officials are wondering the same thing.

Politico reports:

What if the UK never withdraws?

The EU cannot force the UK to notify its withdrawal, but it could try to invoke sanctions under article 7 using the rationale that the political and economic uncertainty created by the delay is undermining the union. But that’s unlikely. Tusk’s top aide [Piotr] Serafin urged national diplomats at their meeting last week to remember that the UK is going through a crisis and they should avoid escalating it by threatening sanctions.

In the meantime, [Jean-Claude Juncker’s chief of staff, Martin] Selmayr suggested at the meeting with diplomats last Sunday, according to a source present, that the EU treat the results of the British referendum the same way it has treated the results of the Dutch referendum in April on trade with Ukraine: by leaving it in limbo.

So here, too, the plan might well be … to not have a plan.

Updated

This afternoon, Jeremy Corbyn will appear in front of the home affairs select committee to answer questions from MPs about Labour’s antisemitism review, published last week.

Keith Vaz, the committee’s chairman, said:

We have seen a deeply troubling upsurge in antisemitic incidents and speech across Britain and Europe in recent times, including within our political discourse …

We are grateful to Jeremy Corbyn for coming to give evidence on his and the Labour party’s position following the publication of the independent report on antisemitism in the party on Thursday.

Ken Livingstone – currently suspended from the Labour party over comments he made linking Hitler to Zionism – gave evidence to the same committee last month and was accused by Chuka Umunna of being a “shame and embarrassment” to the party.

Updated

Boris Johnson has found unlikely agreement on his claim that the vote to leave the EU has been met with hysteria – from shadow chancellor John McDonnell.

McDonnell told ITV’s Good Morning Britain:

Now is the time to sort of calm down, everyone calm down. Since the referendum there’s sort of been mass hysteria in virtually all our political parties and I can’t completely understand it. I’ve never seen anything like it, allegations being made, claims being made. Untruths being said.

McDonnell said claims that plans were afoot to install him as Labour leader in place of the embattled Jeremy Corbyn were untrue:

That has never been discussed. Last week I was accused of a coup against Jeremy myself. This week I was accused of forcing him to stay in. It gets ridiculous.

Updated

Hammond said voters had made it clear that they wanted restrictions on freedom of movement, but that this came at a cost:

We need to be realistic – we need to accept that the terms of trade must change.

In an article for the Telegraph today, Hammond said:

Simply doing our ‘stubborn best’ by demanding access to the market while offering nothing in return may sound brave, but would be foolhardy.

Was that a coded reference to Sarah Vine’s exhortation, in an email to her husband Michael Gove, to “be your stubborn best”?

“Not very heavily coded,” Hammond told Today.

Hammond says it would be 'absurd' to guarantee all EU nationals can stay in UK after Brexit before talks start

The foreign secretary, Philip Hammond – who has declared his backing for Theresa May today – has been speaking on the Today programme.

He was questioned about May’s reluctance to guarantee that EU nationals already living in the UK will be allowed to stay post-Brexit.

“When you go into a negotiation, all the parts are moving,” Hammond told the BBC, adding that “it would be absurd to make a unilateral commitment about EU nationals living in the UK” without knowing that the same deal would be forthcoming for UK citizens living in other EU countries.

  • Hammond says it would be ‘absurd’ to guarantee all EU nationals can stay in UK after Brexit before withdrawal negotiation starts.

Updated

Alain Juppé, former prime minister of France and a candidate for the centre-right presidential nomination, says in the Financial Times today that the remaining EU states shouldn’t give the UK a hard time:

[Brexit] does not mean we are going to punish the UK. We need to find ways to co-operate, to find a solution to have the UK in the European market, one way or another – whether that is part of the European Economic Area or something else.

But, he adds, Britain does need to trigger article 50 soon:

They can’t say yes, no, maybe. Now they must draw the conclusions of the vote. When you get divorced, you don’t stay in the same house. It’s not a question of days, but it has to be fast.

The decision to leave the EU has cast the future of the so-called Osborne Doctrine – by which Britain positioned itself as China’s best friend in the west – into doubt.

Many observers believe that as a result of Brexit, the “golden” relationship between London and Beijing, whose main architects were David Cameron and George Osborne, is now on life support.

But in an interview with the Financial Times, his first since the vote, Osborne has vowed to step up his courtship of China. Announcing another major trade visit here before the year is out, the chancellor said:

We’ve got to get on a plane and sell Britain to the world. And for me that means putting more effort still into our relationship with China.

Beijing will have been disappointed to see its most vocal European cheerleader vote to quit the EU. “I think their initial reaction [to Brexit] was: ‘Fuck!’,” one veteran political observer told the Guardian last week.

But China’s ambassador to London said this weekend he hoped to continue writing a new chapter of “golden era” relations.

Chinese consumers, at least, are taking advantage of the plummeting pound to go on post-Brexit spending sprees for Hermes handbags and Hugo Boss scarfs. Yu Yiran, one happy Chinese shopper, told the Communist party-run Global Times tabloid she was elated by the result:

I am going to buy a Louis Vuitton handbag as soon as possible in case the exchange rate changes again.

Updated

Today’s secretary of state for closing the stable door after the horse has bolted is John Whittingdale:

"I don't want it to descend into a dispute over personality." @JWhittingdale on newspaper h/lines abt Gove.@NickyAACampbell @bbc5live

— Rozina Breen (@RozieBreen) July 4, 2016

The immediate prompt must be the attack – that’s not too strong – on Michael Gove in the Telegraph today by Boris Johnson’s former campaign manager Ben Wallace and its key eye-opening claim:

When I was a government whip and Michael was the chief whip, the office leaked like a sieve. Important policy and personnel details made their way to the papers. Michael seems to have an emotional need to gossip, particularly when drink is taken, as it all too often seemed to be …

UK citizens deserve to know that when they go to sleep at night their secrets and their nation’s secrets aren’t shared in the newspaper column of the prime minister’s wife the next day, or traded away with newspaper proprietors over fine wine.

Tory MPs vote tomorrow in the first round of leadership culling that will see the five candidates reduced to four.

John Redwood – previously a Boris Johnson backer – announces today that he’s opting instead for Andrea Leadsom:

She has a fresh and determined mind, with the qualities necessary to get us out of the EU quickly and with the minimum of disruption.

Whereas the foreign secretary, Philip Hammond, tells the Telegraph he’s backing Theresa May:

I know that Theresa has the qualities and the character to take our country forward and, with her quietly determined, down-to-earth style, to reunite us after the referendum.

Updated

Mishcon de Reya, the law firm taking action on behalf of an anonymous group of clients against the triggering of article 50, has published this explainer on the move:

The referendum held on 23 June was an exercise to obtain the views of UK citizens, the majority of whom expressed a desire to leave the EU. But the decision to trigger article 50 of the Treaty of European Union, the legal process for withdrawal from the EU, rests with the representatives of the people under the UK constitution.

The government, however, has suggested that it has sufficient legal authority. Mishcon de Reya has been in correspondence with the government lawyers since 27 June 2016 on behalf of its clients to seek assurances that the government will uphold the UK constitution and protect the sovereignty of parliament in invoking article 50.

If the correct constitutional process of parliamentary scrutiny and approval is not followed then the notice to withdraw from the EU would be unlawful, negatively impacting the withdrawal negotiations and our future political and economic relationships with the EU and its 27 member states, and open to legal challenge. This legal action seeks to ensure that the article 50 notification process is lawful.

The firm says it has retained David Pannick QC and Tom Hickman to act as counsel. Pannick wrote in the Times last week that an act of parliament would be needed to trigger article 50.

Morning briefing

Welcome back to a fresh week of Brexit live blogs, a week in which we will find out the first two Tory leader wannabes to be kicked off the list; we might find out if a Labour MP (or two) is going to launch a challenge to Jeremy Corbyn; and we certainly won’t find out what’s going on with the whole leaving-the-EU thing.

Here’s the morning briefing to set you up for the day ahead, then stay glued to the live blog with me and (later) Andrew Sparrow through the day. Do come and chat in the comments below or find me on Twitter @Claire_Phipps.

The big picture

It’s Monday, which means Boris Johnson fulfilling his contractual obligations to the Telegraph with a column telling us that there really ought to be a plan for Brexit:

It was wrong of the government to offer the public a binary choice on the EU without being willing – in the event that people voted leave – to explain how this can be made to work in the interests of the UK and Europe. We cannot wait until mid-September, and a new PM.

Despite not being one of the people in line to be that new PM, Johnson does, in fact, have a plan. It’s a five-point plan, although strictly speaking only four of them – EU nationals should be told they can stay in the UK; there should be a free-trade deal with the EU; there should also be free-trade deals with the rest of the world; we should chat to EU countries about security and suchlike – really scrape through as points.

The fifth is:

The future is very bright indeed.

Which possibly means Johnson has seen the latest polling on Michael Gove’s leadership chances. Or indeed what Johnson’s former campaign manager, Ben Wallace, has been saying about Gove’s alleged “emotional need to gossip, particularly when drink is taken, as it all too often seemed to be”.

There are no mentions of Gove in Johnson’s column, which seems more concerned for the emotional needs of remain supporters, or “Lefties”, as he prefers to call them:

There is, among a section of the population, a kind of hysteria, a contagious mourning of the kind that I remember in 1997 after the death of the Princess of Wales.

No hysteria, I’m sure, in the Conservative party, where the whittling-down of leadership candidates begins tomorrow. Andrea Leadsom launches her official campaign today amid accusations that she is the Ukip choice for Tory leader. Ukip and Leave.EU funder Arron Banks is certainly on Team Leadsom, and Tory MP David Jones (a Theresa May backer) has warned:

There is no doubt that elements of Ukip are intending to try to steal a Conservative leadership election.

In the meantime, how about that plan? Chancellor George Osborne has come up with one and his also has five points, key among them a proposal to cut corporation tax to below 15% – the lowest of any major economy – to encourage businesses to invest in post-Brexit Britain. The others, as revealed in an interview with the Financial Times, are:

  • Ensuring support for bank lending.
  • A push for more investment in China.
  • A focus on delivering the Northern Powerhouse.
  • Maintaining Britain’s fiscal credibility.

No word from the chancellor on the brightness of the future, though he does urge everyone to stop “moping around”.

Which brings us to Labour. As last week’s frenetic standoff between Jeremy Corbyn and much of the parliamentary party appears to be cooling/stagnating/freezing in terror and indecision, it is still unclear whether someone – Angela Eagle, Owen Smith, Someone Else – might launch a rival bid. Or (and this sounds familiar) is there a third way? As the Guardian reports today:

One option could be a collective leadership with a ‘kitchen cabinet’ representing different wings of the party … Under such a plan being discussed by some left-leaning MPs, Corbyn could become chairman rather than ‘supreme leader’.

Another alternative is for him to assume a more presidential role, with a consensual leader of the PLP being appointed who would satisfy MPs.

Have we Brexited yet?

No. Will we? Well … In another twist – are we back where we started yet? – solicitors at Mishcon de Reya, acting for “an anonymous group of clients”, have launched pre-emptive legal action, arguing that article 50 (which sets running the two-year deadline for leaving the EU) cannot be triggered without an act of parliament.

Writing in the Guardian, former Lib Dem leader and deputy PM Nick Clegg says we ought to have a general election before article 50 is triggered:

The notion that it should be left to Conservative members to handpick a new prime minister for what in effect will be a new government pursuing new priorities is absurd. This election would also give all parties the opportunity to set out their stalls on what our new relationship with Europe should be.

The would-be PMs vary in their hastiness to push the article 50 button, with May saying not this year, Gove by the end of the year, and Leadsom being the most impatient:

We just need to get on with it.

While we all talk knowledgeably about the Lisbon Treaty, the question of what happens to EU nationals living in the UK (and vice versa) also dogs the Tory leadership debate, as well as the lives of the actual EU nationals living in the UK (and vice versa).

May has been criticised for saying their status would be part of Brexit negotiations, while both Leadsom and Gove have said residency rights would not be threatened. Stephen Crabb, also in the running, has offered reassurance:

I would allow EU citizens already in UK to continue their lives here, and expect same for Brits in EU. People are not bargaining chips

— Stephen Crabb (@scrabbmp) July 3, 2016

You should also know:

Diary

  • Andrea Leadsom officially launches her campaign to be the new Tory leader. The first round of voting among Conservative MPs is tomorrow.
  • At 10am Nigel Farage makes a speech in London on Ukip’s plans for the months following the referendum result.
  • At noon, also in London, Tory leadership contender Liam Fox gives a speech entitled “New Priorities: New Vision”.
  • In the House Commons at 2.30pm, we have education questions, presumably involving Labour’s latest shadow education secretary, Angela Rayner.

Read these

There’s more to Boris Johnson’s column in the Telegraph than his five-point plan:

On Friday I heard a new dawn chorus outside my house. There was a rustling and twittering, as though of starlings assembling on a branch. Then I heard a collective clearing of the throat, and they started yodelling my name – followed by various expletives. ‘Oi Boris – c---!’ they shouted. Or ‘Boris – w-----!’ I looked out to see some otherwise charming-looking young people, the sort who might fast to raise money for a Third World leprosy project.

(The redactions are, of course, the Telegraph’s own.)

In the Times, Clare Foges – a former speechwriter to David Cameron – says Gove is no master manipulator:

He knows from experience that pushing change through the system can be like trudging through a swimming pool filled with sand – so he hits the task with uncompromising velocity. He gets things done …

To set this aside in light of last week would be a profound shame. If Gove is Machiavelli then Ant and Dec are the Kray twins. His concern for the national interest simply trumped etiquette. That is the long and short of it.

Sylvie Kauffmann, writing in the New York Times, says a Frexit is not on the cards – whatever Marine Le Pen might think:

Anticipating the possibility of victory for the leave camp, the National Front had posters on hand proclaiming, ‘And now, France?’ In the current tense domestic and global situation, with a presidential election only 10 months away, Ms Le Pen’s party, which got 28% of the vote in the regional poll held last December, couldn’t have dreamed of such a godsend.

But France doesn’t seem to be ready for Ms Le Pen’s Frexit dream. A TNS Sofres poll taken in the immediate aftermath of the British vote … showed that less than half of the electorate, 45%, would favour holding such a referendum. If it were held, 45% of French voters would have chosen remain and 33% would have voted leave. Three days later, after giving it cooler thought, 55% of French voters rejected the idea of a referendum … and the remain camp had grown to 61%.

Sobering claim of the day

Politics has jumped the shark. Or as Simon Blackwell, a writer on The Thick Of It, puts it:

Lot of tweets saying we should do a Brexit Thick Of It – a) too bleak, b) TTOI found comedy in chaos behind the facade. No facade any more.

Celebrity intervention of the day

Lily Allen, finding herself at a garden party with Rupert Murdoch, Nigel Farage, Liam Fox and Evgeny Lebedev – and who hasn’t had one of those days? – decided to document the Pimms and palling about on Twitter.

I'm at a garden party. Hope I'm not sitting next to Voldemort or Fromage. I might be sick pic.twitter.com/ILsuu6kDPM

— lily (@lilyallen) July 3, 2016

Which prompts my Question of the Day: are Farage’s shoes bespoke or is there a shop that actually sells such things?

The day in a tweet

What have we done?

-exit is the new -gate pic.twitter.com/Yt6HTtbWwr

— Bridie Jabour (@bkjabour) July 3, 2016

(And for those wondering what’s going on in Queensland, a primer.)

If today were a one-hit wonder ...

It would be The Future’s So Bright, I Gotta Wear Shades, by Timbuk3:

Things are going great, and they’re only getting better.

And another thing

Would you like to wake up to this briefing in your inbox? Sign up here.

Updated

Contributors

Andrew Sparrow , Claire Phipps and Ben Quinn

The GuardianTramp

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