Boris Johnson declared 'Project Fear is over' today as he sought to reassure Britain that pensions were safe, the pound and markets were stable and told the nation: 'That's all very good news'.

He struck a notably conciliatory tone as he heaped praised on George Osborne for his 'reassuring' statement to calm the markets this morning and his decision to cancel plans for an emergency budget.

Mr Johnson spoke outside his north London home this morning after effectively launching his leadership bid by appealing to pro-EU supporters in his party and the wider public.

He softened his tone by rowing back on several key arguments he made in favour of Brexit before the EU referendum and hopes it will persuade Mr Osborne to back his leadership campaign.

The Chancellor, who made an early morning statement to calm the markets before they opened at 8am, is set to play a decisive role in the upcoming Tory contest to replace David Cameron.

Mr Johnson has reportedly offered offered him the job of Foreign Secretary if he supports his campaign as he is desperate to fend off a tough challenge from Theresa May, the Home Secretary.

Scroll down for video

Boris Johnson (pictured outside his north London home this morning) declared 'Project Fear is over' as he sought to reassure Britain that pensions were safe, the pound and markets were stable and told the nation: 'I think that's all very good news'

Theresa May (pictured left arriving at today's Cabinet meeting) Boris Johnson (pictured right as he left his home today) are battling each other to win over George Osborne (pictured middle as he arrived to deliver a pre-markets speech this morning), who is set to play a decisive role in who wins the leadership contest

Mr Johnson told reporters this morning outside his home in Islington, north London: 'I think it is very good news that the chancellor has come out and said some reassuring things to the markets.

'It is clear now that project fear is over, there is not going to be an emergency budget, people’s pensions are safe, the pound is stable, markets are stable, I think that is all very good news.'

He was speaking after effectively launching his leadership bid this morning in his weekly Telegraph column, praising Mr Osborne's stewardship of the economy over the last six years and putting it in a state that can withstand the uncertainty caused by Thursday's shock Brexit vote.

Striking a conciliatory tone, he moved to heal the wounds in the Tory party after months of bitter infighting over the EU.

He and fellow Brexit-backer Michael Gove, who is acting as his campaign manager, want to avoid a sour leadership contest and are trying to convince Mr Osborne and his allies to unite behind him.

CHOOSING A PM: HOW THE CONSERVATIVE LEADERSHIP ELECTION WORKS David Cameron announced he is resigning as Prime Minister when he made his post-Brexit statement in the early hours of Friday morning alongside his wife Samantha The leadership election is a two-stage process - first Conservative MPs have their say, then members of the party all around the country are able to vote. If there are two or more candidates, all Tory MPs vote on who they prefer, with the bottom candidate in each round being eliminated until only two are left. The final two then make their pitch to members of the party in a straight head-to-head contest, with the winner determined by postal voting. The exact timescale is unclear, but David Cameron said today that he wants his successor in place by the time of the party conference in October, meaning that the process will have to begin within weeks. Only full members of the party who pay their £25 subscription are entitled to vote - unlike in Labour's leadership contest, where supporters could register for just £3. Advertisement

The Chancellor is set to play a decisive role in who wins the upcoming leadership contest triggered by David Cameron's resignation as Prime Minister on Friday and it is likely to come down to choosing between Mr Johnson and his main obstacle to Number 10 - Mrs May.

Mr Cameron said he hopes a new Prime Minister will be in office by the start of the Conservative party conference at the start of October.

In his newspaper column this morning Mr Johnson began to set out his manifesto for Tory leadership and vision for post-Brexit Britain.

He appealed to pro-EU supporters in his party and the wider public by rowing back on several key arguments he made in favour of leaving the EU during the referendum campaign.

Britain should still have access to the EU's single market, he wrote in his weekly Telegraph column this morning and he said UK citizens will 'still be able to go and work in the EU; to live; to travel; to study; to buy homes and to settle down.'

By doing so he is also offering an olive branch to Mr Osborne and his pro-Remain allies and intriguingly he hailed the Chancellor for his record in office.

'Thanks in large part to the reforms put in place by David Cameron and George Osborne, the fundamentals of the UK economy are outstandingly strong,' he wrote.

Mr Johnson and his close allies, who met for their first war council yesterday to plot strategy, are attempting to woo Mr Osborne and could offer him the post of Foreign Secretary, according to The Times.

Allies of the Chancellor told the newspaper that Mr Osborne would demand to become foreign secretary in return for supporting Mr Johnson, although reports of a deal were firmly denied last night.

The former Mayor of London, along with Michael Gove as his campaign manager, want to avoid another sour battle at the top of the Tory party by assembling a 'dream team' to fend off Home Secretary Theresa May, who posses the biggest threat to Mr Johnson's hopes of becoming PM.

Mr Johnson finally broke cover today after 48 hours silent on his future plans for leadership and the country's exit from the EU.

Boris Johnson spoke outside his north London home this morning (left) after effectively launching his leadership bid by appealing to pro-EU supporters in his party and the wider public by rowing back on several key pledges - a notable softening of the tone that he hopes will persuade George Osborne to back him, which would likely give him the decisive boost to beat his main leadership rival Theresa May (pictured right, arriving for today's Cabinet meeting)

Boris Johnson declared 'Project Fear is over' before getting into a car to head to Westminster this morning

Work and Pensions Secretary Stephen Crabb (pictured left in the red tie arriving at Cabinet today with Brexit-Backer Chris Grayling) is expected to run for leadership but Justice Secretary Michael Gove (pictured outside Downing Street today) is backing Boris Johnson and hopes to unite the party behind the former London Mayor

He insisted the UK should not be in 'any great rush' to withdraw from the EU and its 'extraordinary and opaque system of legislation'.

And he insisted immigration was not the reason Britain voted for Brexit, but instead the 'number one issue’ for voters had been control, ‘a sense that British democracy was being undermined by the EU system, and that we should restore to the people that vital power: to kick out their rulers at elections, and to choose new ones.’

He also appeared to backtrack on the controversial Vote Leave claims that Britain spends £350million a week in net contributions to the EU and would be able to spend the sum on other priorities, including the NHS.

Today he only refers to it as a 'substantial sum of money' that can be 'used on priorities such as the NHS'.

The toned-down rhetoric is a clear attempt to heal divisions in the party and convince skeptical Tory MPs that he offers a serious plan for government.

Justice Secretary Michael Gove (pictured left leaving his home this morning) has been put in charge of Boris Johnson's bid to replace David Cameron but is likely to face challenges from other Cabinet ministers such as Education Secretary Nicky Morgan (pictured right arriving at today's Cabinet meeting with Liz Truss, left)

Pro-Remain Cabinet ministers Anna Soubry (left), business minister, Sajid Javid (middle), the Business Secretary and Jeremy Hunt (right), the Health Secretary arrive for today's intense Cabinet meeting as Tory figures begin to set out their stalls for leadership

Employment minister Priti Patel (pictured left arriving at today's Cabinet meeting with Welsh Secretary Alun Cairns) played a key role in the Vote Leave campaign against pro-Remain Transport Secretary Patrick McLoughlin and International Development Secretary Justine Greening (pictured arriving at Cabinet today)

Michael Gove (pictured entering Number 10 this morning) is in charge of Boris Johnson's leadership bid and will try to persuade Tory ministers to sign up but it will be difficult to win over the likes of Philip Hammond (middle), the Foreign Secretary and Amber Rudd (right), Energy Secretary, who launched a bitter attack on the former London Mayor during a live TV debate on the EU earlier this month

Mr Johnson also had warm words for Bank of England Governor Mark Carney, with whom many pro-Brexit Tories are furious after his part in Project Fear.

Mr Johnson’s conciliatory tone is intended to broaden his appeal to include Remain supporters.

Writing in his regular Daily Telegraph column, he said the Leave campaign had to acknowledge their victory was not overwhelming and went on: ‘There were more than 16 million who wanted to remain...In a democracy majorities may decide but everyone is of equal value.

'We who are part of this narrow majority must do everything we can to reassure the Remainers.’

He said rather than immigration, the ‘number one issue’ for voters had been control, ‘a sense that British democracy was being undermined by the EU system, and that we should restore to the people that vital power: to kick out their rulers at elections, and to choose new ones.’

He said Mr Carney had done ‘a superb job’ and that David Cameron and George Osborne had led the UK to an ‘outstandingly strong’ economic position. He added: ‘I cannot stress too much that Britain is part of Europe, and always will be. There will still be intense and intensifying European cooperation and partnership.’

While Mr Johnson is the hot favourite to take over leadership of the Conservative Party, past Tory leadership elections suggest early favourites rarely win.

As well as David Cameron, Tory party leaders including Iain Duncan Smith, John Major and Margaret Thatcher were not considered favourites when they announced their candidacy for leadership.

The 1922 Committee of Conservative backbench MPs is due to meet today to decide the rules for the forthcoming election, with dates for campaign hustings to be announced tomorrow.

Last night suggestions the rules could change to ensure a woman is in the final two were dismissed by 1922 Committee sources.

Boris Johnson (left) is understood to have been given the blessing for a leadership challenge by his wife Marina Wheeler QC (pictured right, leaving their north London home this morning)

Tory MP for Selby Nigel Adams (left) and fellow backbencher Amanda Milling (right), MP for Cannock Chase, arrive at Boris Johnson's Oxfordshire home yesterday as they discussed strategy for winning the Tory leadership

Ben Wallace (left), Conservative MP Wyre and Preston North, was one of the plotters who arrived at Boris Johnson's house in Oxfordshire yesterday to plot strategy for the leadership contest ahead

George Osborne mulls offer of Foreign Secretary in return for backing Boris Johnson in race to replace David Cameron as PM

George Osborne (pictured this morning) is mulling an offer of Foreign Secretary if he backs Boris Johnson's bid to replace David Cameron as Prime Minister, it was reported today

George Osborne is mulling an offer of Foreign Secretary if he backs Boris Johnson's bid to replace David Cameron as Prime Minister, it was reported today.

Mr Johnson and his leadership campaign manager Michael Gove, the Justice Secretary, is keen to unite as many Tory MPs behind the Brexit champion in order to heal the bitter wounds caused by the EU referendum campaign.

They are desperate to fend off a tough challenge from Theresa May, the Home Secretary, who they see as their main challenge.

Mr Osborne has yet to reach a decision but would demand the post of Foreign Secretary if he lent his support to Mr Johnson, allies of the Chancellor told The Times.

Mr Gove will play a key role in wooing backers and is a close friend of Mr Osborne.

And Mr Osborne himself will play a decisive role in who wins the contest because of his significant number of allies in the party.

But having traded bitter blows for four months during the EU referendum campaign, some in the party doubt relations between the main players of the Remain and Brexit campaigners can be reconciled together in a new government.

Today the Tory 1922 Committee announced the timetable for the leadership contest.

The new leader will be announced by September 2 at the latest - before MPs return to Parliament after the summer recess. Whoever wins is likely to become Prime Minister on the same day.

Nominations for the contest will open on Wednesday and close on Thursday.

At an emergency meeting in Westminster, the committee agreed unanimously that the contest should be run under the same rules as 2005, which will see MPs pick two candidates to put to the wider membership.

The speedy process - which has to be signed off by the party board on Tuesday and a full meeting of the backbench committee on Wednesday - would appear to favour established candidates.

Michael Gove heads plot to clear Boris Johnson's path to No. 10

Michael Gove (pictured this morning) who has significant support among Conservative backbenches and has in-depth knowledge of the parliamentary from his time as chief whip, is determined to pave the way for a smooth path to Downing Street for Mr Johnson to avoid any more bitter infighting in the party

Michael Gove is heading up Boris Johnson's bid to replace David Cameron as Prime Minister and is seeking to persuade other leadership hopefuls to stand aside.

The Justice Secretary, who has significant support among Conservative backbenches and has in-depth knowledge of the parliamentary from his time as chief whip, is determined to pave the way for a smooth path to Downing Street for Mr Johnson to avoid any more bitter infighting in the party.

He joined a core group of plotters at Mr Johnson's Oxfordshire home yesterday to plan a strategy and reportedly approached George Osborne, offering him the role of Foreign Secretary in return for his backing.

A Tory MP told The Sun: 'What the party needs is to come together foer the good of the country.

'Boris and Michael offer that unity ticket and that is the pitch being made to colleagues.'

But they face a fierce battle against Theresa May, the Home Secretary, who has declared her intention to run.

She is seen as the main hope of stopping Mr Johnson and will attract the pro-Remain MPs who are angry at Mr Johnson for leading Britain out of the EU.

David Cameron, although he has said he will be neutral in the upcoming leadership contest, is understood to be furious with the former London Mayor and his allies are keen to do anything to stop Mr Johnson becoming Prime Minister.

Today the Tory 1922 Committee announced the timetable for the leadership contest.

The new leader will be announced by September 2 at the latest - before MPs return to Parliament after the summer recess. Whoever wins is likely to become Prime Minister on the same day.

Nominations for the contest will open on Wednesday and close on Thursday.

THE RUNNERS AND RIDERS: WHO WILL LEAD THE RACE TO REPLACE DAVID CAMERON AT NUMBER 10? BORIS JOHNSON The overwhelming favorite going into the contest, the former Mayor of London has led the Vote Leave campaign to an improbable victory. Declaring for Brexit in February cemented the Uxbridge MP as a darling of the Tory right and he seems certain to make the shortlist. Johnson has a celebrity unique among British politicians but despite eight years running the capital, he will have a big job to do to persuade the country he is up to leading the country. GEORGE OSBORNE The Chancellor of the Exchequer has long been the heir-apparent to David Cameron. The Prime Minister's deputy and close ally has spent six years in Number 11, is credited by many in the Tory Party for rescuing the economy and is a prized tactician. But his leadership bid has almost certainly been crashed off the tracks by a catastrophic Budget in March and his role standing shoulder to shoulder with the PM during the referendum campaign. RUTH DAVIDSON The Leader of the Scottish Conservatives arrives at the contest having pulled off the near miracle of overhauling Labour to take second in Scotland. Davidson was a star of the referendum campaign for her combative appearance at the final TV debate and as someone a million miles from the old Etonian Tory which has proven toxic with much of the electorate she would be prized by the One Nation wing of the party. Her candidacy is a longshot - not least because she is not an MP and has a huge job opposing Nicola Sturgeon in Holyrood. But on the day Britain backed Brexit is anything impossible? THERESA MAY After six years as Home Secretary, Theresa May is the sober, serious choice - and probably the strongest 'continuity candidate' who could succeed Cameron. May has become the longest serving Home Secretary, thriving in a brief which has proved the graveyard for many a political career. Tough, a safe pair of hands and widely respected - if not always seen fondly - May could be the anti-Boris. STEPHEN CRABB Perhaps the biggest unknown in the race, the work and pensions secretary was parachuted into the top of front line politics as the replacement for Iain Duncan Smith after his bombshell resignation over the Budget. Crabb, a Welsh son of a broken home, could be the leading One Nation candidate in the leadership race. Being a new name - and one who was quiet in the referendum - could allow Crabb to define himself a unifying candidate. LIAM FOX A heavy weight with Cabinet experience, Fox has run for the leadership before - and lost. But he is extremely popular on the right of the party and played a leading role in referendum campaign, appearing with different parts of the Leave movement. The former defence secretary is known to have a war chest ready and waiting for the leadership campaign and is well connected on the Tory benches. While it is perhaps hard to see a route onto the final shortlist, Fox would undoubtedly be well organised and a fearsome candidate. Advertisement

Project Fear? It's all in the past, says Javid as he backtracks on claims Brexit will trigger recession and cause loss of 500,000 jobs

Sajid Javid tried to distance himself from Project Fear yesterday as he admitted that many of the Remain campaign's doom-laden forecasts could be 'avoided'.

The Business Secretary, a Euroscpetic, was savaged by Tory MPs during the referendum over his decision to side with David Cameron and the Remain camp.

He faced particular criticism for being willing to side with the Government's various warnings that the UK would face financial catastrophe if the country voted out.

But, in a bruising TV interview yesterday, Mr Javid stepped back from his previous warnings about the potential dangers of a Brexit.

Scroll down for video

The Business Secretary, a Euroscpetic, was interrogated by Andrew Marr in a BBC interview yesterday

He refused three times to say there would be an emergency Budget – which George Osborne had threatened would happen within weeks if the UK voted to leave the EU.

And he backtracked on his own prediction that a Brexit would trigger a recession 'within two years', along with a '3.6 per cent contraction in GDP, higher inflation, house prices ten per cent lower, and a loss of over half a million jobs'.

Asked by the BBC's Andrew Marr if he still believed that, he replied: 'Throughout the campaign there were many organisations that made all sorts of forecasts.'

When the question was repeated, Mr Javid said: 'What matters now is the reality, how we actually face this momentous decision for our country.

'What I actually am focused on now is speaking to businesses, I've called many of them ever since 7am on Friday to get their input. Millions of people, I've spoken to businesses large and small and their representatives, I've convened a special Round Table next week.

'I'm listening to those businesses, their anxiety, their concerns, and I'm going to make this work.'

Mr Marr, then repeated the question, saying 'I'm asking you whether you think we're heading for a recession and the loss of half a million jobs. It's not an insignificant question.

At this point, Mr Javid replied: 'I think if we all work together we can avoid many of those things that were forecast. We can work together, we've got a chance to do that'

However, he denied that – by being part of Project Fear – he had been 'dishonest'.

Sajid Javid tried to distance himself from Project Fear yesterday after the Remain team lost to the Leave side (supporters in London pictured)

He said: 'I think it's wrong to accuse anyone of dishonesty. It was a robust campaign, there were a lot of emotions on all sides, the campaign is now over, people have made up their mind, that's their right, and the instructions have been issued.

'So we've all got to now work together, no matter what side you were on in the debate. We will come together to make this work for the country.'

Mr Javid is likely to play a key role in coming weeks in calming the fears of the business world.

Friends said the former banker would be willing to play a role in negotiating the terms of Britain's exit from the EU, if wanted.

Mr Javid refused to be drawn on who he believes should take over from David Cameron as PM, but warned the winner faces a 'momentous job'.

He said: 'The good thing for the Conservatives is that there is lots of talent in the party. There will be, I am sure, lots of people to choose from.'

He continued: 'What all our colleagues are determined to do is to make this decision of the British people work.