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Cameron now will be out of Downing Street by October and Corbyn's position is in the balance after the UK voted to leave the European Union.

This paves the way for Boris Johnson to bid for the PM's job and has prompted Scottish First Minister Nicola Sturgeon to call for a second Scottish independence referendum.

Shockwaves have been felt elsewhere in Europe with growing calls among some EU nations for their own referendums – which could push the union to collapse if they vote out too.

Meanwhile the Bank of England is being forced to plough £250bn to prop up the British Pound after its value plunged to record lows following Brexit.

Brits going to places such as Spain or Greece will have less to spend as the UK currency crashes and holidaymakers get less Euros for their Pounds.

(Image: SKY NEWS)

There were some gasps among the world's press, who had been gathering in Downing Street since dawn to hear how the PM would respond to his crushing defeat.

Flanked by wife Samantha as he delivered an emotional statement outside Number 10, Mr Cameron said he accepted the decision of the electorate, which voted by 52% to 48% to quit the EU.

"The British people have voted to leave the European Union and their will must be respected," he said. "The will of the British people is an instruction that must be delivered."

He said he would leave it to his successor to invoke Article 50 of the Lisbon Treaty, which kicks off the two-year process of negotiating a new trade relationship with the UK's former partners.

"The country requires fresh leadership to take it in this direction," said Mr Cameron.

"I will do everything I can as Prime Minister to steady the ship over the coming weeks and months, but I don't think it would be right for me to try to be the captain that steers our country to its next destination."

(Image: SKY NEWS)

The shock announcement will trigger a battle for the Conservative leadership – and the keys to Number 10 – likely to feature Brexit standard-bearer Bojo taking on figures such as Home Secretary Theresa May, who took a low profile in the referendum campaign.

Cameron's departure comes just over a year after he won an outright majority at the 2015 General Election.

Boris is tipped by bookmakers to be the next Prime Minister with chancellor George Osborne also a contender despite campaigning for Remain.

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Corbyn could be booted out as leader of the Labour Party by as early as Monday as he faces a vote of no confidence.

The UK has voted to leave the EU after huge turnouts in Labour heartlands in Wales and the north of England voted to exit the EU.

But Scotand and Northern Ireland both voted in favour of staying in the EU and nationalists there are threatening an independence vote.

Scottish First Minister Nicola Sturgeon says a second independence referendum is now "highly likely" given that Scotland voted remain.

The SNP leader pledged to take "all possible steps and explore all options" to secure the Scots a place in the EU as she announced her intentions.

(Image: SKY NEWS)

There's also a threat to Gibraltar, as the foreign minister of Spain today called for joint-sovereignty of the Rock as a stepping stone to Spanish ownership.

The Spanish government is reportedly proposing it shares the British overseas territory on its Southern Coast.

In the referendum, Gibraltar voted overwhelmingly in favour of remaining part of the European Union.

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In a joint statement in Brussels, European Council president Donald Tusk, European Parliament president Martin Schulz, Dutch prime minister Mark Rutte and European Commission president Jean-Claude Juncker said they were ready to launch negotiations swiftly on withdrawal.

Mr Tusk said there was "no way of predicting all the political consequences of this event, especially for the UK", and called for calm.

"It is a historic moment but for sure not a moment for hysterical reactions," he said.

Mr Cameron has summoned the Cabinet to meet on Monday, the day before he goes to Brussels for a summit where he will "explain the decision the British people have taken and my own decision" to leaders of the remaining 27 member states.

French president Francois Hollande said he was "sad" to see Britain sever relations with the EU, but warned the remaining states that action was needed from them to reconnect with citizens.

German chancellor Angela Merkel, who will meet Mr Hollande on Monday in Berlin to discuss the crisis, expressed "great regret" at the UK's decision to leave, but said the EU was "strong enough" to "find the right answers".