Hello, and welcome. Jeremy Corbyn has lost a vote of no confidence and now faces a challenge from Labour Party MPs. We're closing the blog but we'll keep reporting and analysing the story as the leadership race comes into focus.

This is what you need to know:

MPs have passed a no confidence motion against Jeremy Corbyn by 172 votes to 40, with 4 abstentions

Jeremy Corbyn vows to defy "unconstitutional vote" and stay on rather than "betraying" party members

The main challenger is tipped to be either Angela Eagle or Tom Watson

Meanwhile the Scottish Government is wooing Brussels and Stephen Crabb is tipped to run for Tory leader

From the moment the EU referendum results rolled in, all eyes were on Eurosceptic Labour leader Jeremy Corbyn. But he made no move to resign.

Then, overnight on Saturday, Hilary Benn was sacked from the shadow cabinet. The game was on. Sunday saw a string of resignations from the shadow cabinet, and by Monday roughly two thirds had gone.

But Corbyn wasn't going to give up so easily.

Backed by his old friend and Shadow chancellor John McDonnell, he replaced the shadow cabinet and appeared at a rally organised by the grassroots movement Momentum.

The Parliamentary Labour Party was determined to press on. There was an emotional meeting that spilled out into the Westminster corridors. Margaret Hodge tabled a no confidence vote. And then, on Tuesday afternoon, MPs voted in a secret ballot.

The result was damning. Just 40 MPs backed Corbyn, compared to 172 who told him to go. A further four abstained.

Still, Corbyn refused to go. He denounced the vote as having "no constitutional legitimacy" and said he would "not betray" party members by resigning.

With the Corbynites and PLP at loggerheads, it is still unclear how the battle will end. The PLP must now come up with a candidate with a chance of beating the hugely-popular Corbyn, or find a way to strike him off the ballot.

The fight for the soul of the Labour Party has only just begun.

For the whole story, scroll down...

17:40 Another resignation.

Clive Efford has resigned as Shadow DCMS Minister - head of soft left Tribune group. — George Eaton (@georgeeaton) June 28, 2016

17:34 A tweet from ITV's Chris Ship suggests we'll get Watson or Eagle, but not some kind of Team Weagle.

NEW: The challenger to Jeremy Corbyn will be either @tom_watson or @angelaeagle. No contest launched yet — Chris Ship (@chrisshipitv) June 28, 2016

17:18 For anyone tuning in now who doesn't like to read their news backwards, my colleague Anoosh has written this helpful guide to the vote of no confidence and what happens next.

17:16 Christina Rees, one of the few remaining ministers from Corbyn's original cabinet, has resigned:

Christina Rees, shadow justice minister, has resigned her post. — Stephen Bush (@stephenkb) June 28, 2016

17:13 Labour MP Wes Streeting tweets that Corbyn's position is "untenable":

It's abundantly clear that @jeremycorbyn cannot command a majority of the PLP. His position is untenable. He should resign now with dignity. — Wes Streeting MP (@wesstreeting) June 28, 2016

17:03 Jeremy Corbyn has made a statement saying the vote of no confidence has "no constitutional legitimacy":

“In the aftermath of last week’s referendum, our country faces major challenges. Risks to the economy and living standards are growing. The public is divided. “The Government is in disarray. Ministers have made it clear they have no exit plan, but are determined to make working people pay with a new round of cuts and tax rises. “Labour has the responsibility to give a lead where the Government will not. We need to bring people together, hold the Government to account, oppose austerity and set out a path to exit that will protect jobs and incomes. “To do that we need to stand together. Since I was elected leader of our party nine months ago, we have repeatedly defeated the Government over its attacks on living standards. “Last month, Labour become the largest party in the local elections. In Thursday’s referendum, a narrow majority voted to leave, but two thirds of Labour supporters backed our call for a remain vote. “I was democratically elected leader of our party for a new kind of politics by 60 per cent of Labour members and supporters, and I will not betray them by resigning. Today’s vote by MPs has no constitutional legitimacy. “We are a democratic party, with a clear constitution. Our people need Labour party members, trade unionists and MPs to unite behind my leadership at a critical time for our country.”

16:57 More on that ballot situation. If Corbyn doesn't get enough nominations, Corbynistas will argue that the rule you need 20% of the MPs to nominate you only applies to challengers. According to lawyers Doughty Chambers, this doesn't apply to incumbents, like Jezza. You can read the full advice here.

16:45 The next challenge for anti-Corbyn MPs is to keep him off the ballot. Their job is made easier by the fact he has only 40 core supporters. But if he does get on, under current rules there's a good chance he could win again.

I met activists from the pro-Corbyn grassroots organisation Momentum at a rally on Monday night, as the coup gathered pace. One organiser told me if there is another leadership election "Jeremy will win again". It's undeniable he's electrified a lot of activists on the left and captured the imagination of party members. I don't see them jumping to support Eagle or Watson, especially given it's a hostile takeover.

16:38 Labour heavyweights Tom Watson and Angela Eagle are meeting now, according to Kay Burley from Sky News.

Break: Watson and Angela Eagle meeting NOW - likely to discuss challenge on Corbyn for leadership — Kay Burley (@KayBurley) June 28, 2016

Eagle has grown in prominence under the Corbyn leadership and has been making squawks about "unity" in recent days. Watson won the deputy leadership by more than double the share of the vote gained by rival candidates.

16:24 Labour MPs have passed a no confidence motion in their leader, Jeremy Corbyn. The vote was 172 to 40. This breakdown is important because Corbyn will need 50 nominations to get on the ballot again.

Result means #JeremyCorbyn will struggle to get back on the ballot if his name does not go forward automatically. — Ben Glaze (@benglaze) June 28, 2016

Our Political Editor, George Eaton, isn't surprised:

Corbyn has never had the confidence of Labour MPs. Today just makes it official. — George Eaton (@georgeeaton) June 28, 2016

16:09 The source of all the Crabb gossip appears to be an email inviting Tory MPs for networking drinks, according to The Mirror. The email, from Maria Caulfield, Simon Hoare and Craig Williams, says Crabb is standing as a candidate.

15:53 It seems that Crabb is scuttling away from the headlines. The BBC has changed its headline to "expected" to run. But The Sun already seemed sure this "blue collar dream team" was standing last night. Makes Labour look like an oasis of calm...

I'm told by Stephen Crabb's special adviser he has NOT declared his intention to run for the Tory leadership. — Katy Searle (@KatySearle) June 28, 2016

15:34 Pat Glass is Labour's new shadow education secretary, but not for that long, it turns out. She has written to her local Labour branch formally giving notice that she does not intend to stand in the next General Election, which "could come as soon as October 2016".

She writes that representing the people she grew up with has been a privilege and an honour, but continues:

"Whilst I had always intended to do no more than two terms in Parliament I have found the last six months very,very difficult. "The referendum has been incredibly divisive, it divided families and communities and I have found it bruising in many respects. It has had an impact on both me and my family as I am sure it has had on many others."

Glass, who campaigned to Remain, revealed earlier that she had received death threats and stayed away from the referendum count as a result. She has been an MP since 2010, and a Shadow minister since January.

I have informed my CLP Chair that whenever the next General Election takes place, I will not be Labour's candidate. pic.twitter.com/g3DADx57KF — Pat Glass (@PatGlassMP) June 28, 2016

15:24 A little bit of blue-on-blue action now. Stephen Crabb, the Department for Work and Pensions minister who replaced Iain Duncan Smith, is going to run for PM.

Crabb, who backed Remain, is launching his bid with Osborne protege and Business secretary Sajid Javid as his right-hand man.

He'll have some powerful supporters - political star and leader of the Scottish Tories Ruth Davidson has previously described him as her "political soulmate". Both Crabb and Javid come from working class backgrounds, which could help the Tory leadership escape the pervading whiff of Bullingdon Club, most strongly surrounding a certain Boris Johnson...

14:45 STOP PRESS. Our Political Editor, George Eaton, has been spotted with Keanu Reaves.

... And if it wasn't surreal enough... Keanu Reeves has just turned up in Parliament...does all feel like The Matrix pic.twitter.com/rIPNwCnVAQ — Faisal Islam (@faisalislam) June 28, 2016

George is so dedicated in his research of the current philosophical challenges facing the Labour Party he'll turn to The Matrix to find the truth.

14:24 A fabulous new video experience of the newly-appointed Shadow cabinet has emerged.

As the camera begins to roll, a worried-looking Jeremy Corbyn says "This seems like a bad idea". He then says to his spin doctor: "Seumas, I'm not sure this is a great idea either."

He then gives a polite smile while his eyes dart back to the camera. And then asks: "Are we getting the camera to go or what?"

Deputy leader Tom Watson, widely tipped as a leadership challenger, sits uneasily beside him.

Jeremy Corbyn reshuffles the shadow cabinet - literally - before TV filming https://t.co/7D7wyfdN1c https://t.co/ceabdcinNd — Sky News (@SkyNews) June 28, 2016

It's great that media-shy Corbyn has opened up to cameras. But my colleague and electoral soothsayer Stephen Bush isn't convinced.

If Corbyn does lead Labour into the next election, this video will form the basis of a constructive dismissal case. https://t.co/SguD4Q3aUu — Stephen Bush (@stephenkb) June 28, 2016

13:08 Labour MPs may be about to bury Jeremy Corbyn in a secret ballot, but outside the walls of Parliament, his supporters are ready to fight. I met some of them at the Momentum rally on Monday night. You can read more about it here.

12:59 Julia here. While Westminster is a hotbed of rumour, Scotland's First Minister Nicola Sturgeon has been getting on with it. She is meeting European Parliament President Martin Schultz tomorrow.

Although the SNP's promise of an independent European Scotland was shot down during the Scottish referendum, it seems this time round MEPs are sympathetic. Guy Verhofstadt, the former Belgium PM, who leads the Alliance of Liberals and Democrats for Europe parliamentary group tweeted: "It's wrong that Scotland might be taken out of [the] EU." Scroll down to see the standing ovation a Scottish MEP earned when he urged the Parliament "do not let Scotland down".

12:47 George here. A Labour source tells me that "Angela Eagle has told Tom Watson that she will stand aside if he runs" against Jeremy Corbyn. The source said that this was "on the basis of his mandate as deputy leader against her lack of one having stood in the same race [in which she finished fourth]". But an Eagle aide tells me this is "absolutely not true".

11:28 Shadow Energy and Climate Change Minister Alan Whitehead has resigned.

In his resignation letter, he says: "You are a good, decent, committed person, but unfortunately not the right person to lead the Opposition."

He thanks Corbyn for giving the opportunity to work for an area he feels passionate about, but continues: "I cannot give you complete loyalty in this position and it would be dishonest of me to continue to occupy it."

It is with great sadness that I have resigned as Shadow Energy and Climate Change Minister as of 11am today pic.twitter.com/97JksufgUz — Alan Whitehead (@alanwhiteheadmp) June 28, 2016

10:57 For a bit of light relief, let's turn to the European Parliament.

Jean-Claude Juncker asked Nigel Farage: "I am really surprised that you are here. You are fighting for the exit, the British people voted in favour of the exit. Why are you here?"

Farage in turn tells MEPs "Virtually none of you have ever done a proper job in your lives." The President calms them down by telling them "you're behaving like UKIP".

Scottish MEP Alyn Smith, though, gets a standing ovation.

He says he is proudly European: "The people of Scotland along with the people of NI and the people of London and lots of people in England and Wales also." Brandishing a map showing Scotland's Remain vote, he adds: "please remember this. Scotland did not let you die. Please, I beg you, cher colleague, do not let Scotland down now."

"Do not let Scotland down." Scotland's @AlynSmithMEP gets a rousing applause from European Parliament https://t.co/961mdWVlfE — Sky News (@SkyNews) June 28, 2016

10:37 On Angela Eagle, another potential challenger to Corbyn, a Labour source told me: "Angela is widely regarded as the candidate who can unite the Labour Party and heal the divisions. She has impressed MPs with her performances at PMQs and has the skill and intellect to rebuild Labour into the credible opposition that the country is crying out for. It is no surprise that colleagues are turning to her, she is very much considered as a tough Angela Merkel-type figure, someone who can lead the party through this difficult period."

10:31 George here. Labour MPs expect a two-thirds vote of no confidence in Corbyn when the result is announced around 4:30pm. They then expect a mass resignation of whips (a leader's last line of defence) to follow.

I'm also told there is "growing pressure" on Tom Watson from all wings of the party to stand against Corbyn.

08:49 The FTSE 100 has opened up 2.09 per cent, with housebuilder Persimmon up 7.25 per cent. This suggests investors are feeling more optimistic about the property market.

More crucially, the domestic-facing FTSE 250 is up 2.86 per cent.

The pound has "stabilised", but that doesn't mean much if you didn't exchange your holiday money in time.

08:38 More from Jeremy Hunt, best known for infuriating junior doctors, who is "seriously considering" joining the leadership race.

He calls for a second vote on a deal resembling "Norway plus". Says full access to the single market is essential for jobs, but with some immigration controls.

According to Hunt: "I do think that deal needs to have some sort of democratic endorsement. My preference would be in the 2020 Conservative manifesto."

He then starts talking about Schengen freedom of movement rules that have never applied to the UK anyway.

08:29 Corbyn loyalist Diane Abbott is not giving any ground to the PLP. She tells Today nearly 60 per cent of Labour members still support the leadership: "Fleet Street and Labour MPs at Westminster do not choose the leader of the Labour Party. The Party does that."

She accuses media commentators of being "Westminster-centric" and questions the validity of a no confidence vote: "We have to remember this vote of no confidence doesn't exist in the rule book. It has no meaning."

08:22 "Did I want Britain to remain in the EU? Yes. Did I fear the consequences? Yes." Osborne signs off by saying he doesn't do things by half measures, but he loves his country and will "do everything I can" in the weeks and months ahead.

08:19 Osborne says there are loads of contingency plans in place for financial shocks. He says accusations otherwise are "nonsensical" and "it was not the responsibility" of those who wanted to remain in the EU to explain what happened when we voted out. He says he's not backing a leadership candidate but says a Remain campaigner could stand: "The candidate now who is able to articulate now the clearest, crispest version of what we are seeing is the candidate who I think can lead the country."

NB: Theresa May officially supported Remain.

08:13 Osborne, who was understood to have opposed a referendum, says: "We had a big and lively debate about it inside the Conservative Party." He refuses to be drawn on his own discussions, but insists: "I supported the decision we collectively took to hold a referendum."

He tells the BBC his successors will have to show the world Britain can live within its means: "We are absolutely going to have to provide fiscal security to people."

In other words, there will be a Punishment Budget, but he's leaving that for the next Conservative leadership to dish out.

08:01 In non-Labour news, George Osborne, a prominent Remain backer, has ruled himself out of a Tory leadership contest. He had previously been tipped to succeed Cameron. It paves the way for a contest between the hugely popular Leave campaigner Boris Johnson and heavyweight Home Secretary Theresa May. Meanwhile, Jeremy Hunt has called for a second referendum.

07:58 Another set of stories coming out about the Momentum rally last night, just outside Parliament. I was there, and the devotion to Jeremy Corbyn was striking. But who exactly do his supporters represent?

The Today programme has captured an argument between a Corbyn supporter and a lone dissenter. The dissenter is told: "I would just leave if I were you.

"You're a single lone voice here walking around with your Resign placard. You on the right wing of the party is not what we want to hear."

He was certainly a brave man - I saw posters describing the PLP as "scabs".

07:55 Tales from last night's fraught meeting of the Parliamentary Labour Party.

The BBC reports MPs were standing in corridors in full view of Corbyn aides calling for him to go. It got emotional - some MPs left the meeting in tears.

Margaret Hodge, who proposed the no confidence vote, is now on the Today programme. She says she has had hundreds of messages in support, and it's the millions of voters that matter. She says MPs are telling her "Jeremy's a problem on the doorstep".

Corbyn should do "what all decent men do" and consider his position, she says. It is in the best interests of the party, and the country.

Excruciating PLP never seen my colleagues so angry but united & with wholly inadequate response from Jeremy. — Barry Sheerman (@BarrySheerman) June 27, 2016

07:21 A quick look at the Asian markets. And it's looking a little more stable.

Japan's Nikkei was up 0.09% last night, but China's Hang Seng index was dowwn 0.76%. Investors see Japan as relatively stable right now, whereas China has problems of its own. The FTSE 100 closed down, at 5,982.20 last night.

The pound has crept up against the dollar overnight, but it is still in the doldrums compared to before the vote.

Meanwhile, Martin Gilbert from Aberdeen Asset Management has some intereting observations on the chances of a Scottish independence referendum (he supported the last one). "Nicola is a pretty cautious politician," he told the BBC. "She's not going to go for a referendum unless she's pretty sure she'll win it."

The key point is whether Europe will allow Scotland to remain, he adds.

07:17 My old paper, the staunchly Labour Mirror, has told Jeremy Corbyn he's got to go.

It comes hours after Corbyn hit back at a rally of his grassroots supporters, Momentum. He told them: "I do not want to live in a country where there are people sleeping on the streets while the mansions are left empty.

"The political atmosphere we have is about challenging these orthodoxies."

TUESDAY 07:09 Julia here. Shadow justice minister Andy Slaughter has resigned, according to the BBC. He calls himself a "comrade" of Corbyn and, damningly, only resigned after discussing it with local party activists.

18:25: Am told that there will be no news tonight. See you all tomorrow at 7am. (sob)

18:12: Reshuffle news! Jon Trickett is moved from shadow local government to shadow lord president of the council, the only post in politics that sounds like a baddie in Star Wars. Replacing him at shadow local gov is Graeme Morris, promoted from the whips' office. Debbie Abrahams is promoted to shadow secretary for work and pensions, Barry Gardiner goes to shadow energy, while Richard Burgon is made shadow secretary of state for justice.

Not much news on who - or if - the junior posts will be filled by.

18:05: Just when I thought I was out. Richard Burden, a long-time fellow traveller of Jeremy Corbyn's, from the left of the party, has resigned, warning that he is "making things worse" (Corbyn, that is, though Corbyn might equally say it of Burden).

"I have always thought of you as a friend. We have worked together on things like Israel and Palestine for years. I did not vote for you as Leader of our Party for reasons I outlined at the time, but I accepted and respected the victory you achieved.

"I have never joined in with the destructive sniping that has taken place from some quarters since pretty much the day you were elected and I hope you accept that I have served loyally as Shadow Minister for Strategic Transport Networks.

"But we are where we are now. In a Parliamentary democracy, leadership involves being able to work with colleagues around you - people who have also been elected to serve their constituents just as much as you or I have."

17:30: Stephen here: Jack Dromey has resigned as shadow home office minister. I think that's a clean sweep of the Home Office team.

16:58 Here's a clanger. Stephen Bush has sent me a comment piece from Richard Murphy, who advised Corbyn during the leadership election. He's backing those "demanding change":

“Now his leadership is in crisis. I will make myself unpopular for saying this, but I think that those demanding change are right to do so, even if I will not agree with much of their reasoning. In my opinion Corbyn has been guilty of three things. First, he has not grown into the job in the way John McDonnell has into his: after nine months he still feels like the reluctant leader who cannot do up his tie when necessary, and I hate to say it, but such messages are important. People believe that this is a slap-dash approach that means he cannot lead as a result.”

16:49 Labour MP Kevin Brennan is asking when the NHS can get the extra £350million promised.

Cameron answers with a grin "my successor will have to explain where the money's going".

Meanwhile in Scotland... Labour leader Kezia Dugdale signals independence may no longer be impossible to stomach. She has written an opinion piece arguing "the case for independence is stronger now".

16:42 Will Straw, head of Britain Stronger in Europe calls on Corbyn to go:

"Jeremy Corbyn should follow David Cameron’s lead. Under his leadership, Labour is further removed from its industrial heartlands than ever before with 29 per cent of its supporters threatening to go elsewhere. New research from the IPPR think tank shows that the poorest families will be hit twice as hard by new inflation caused by sterling’s slide as the richest—many living in areas that voted overwhelmingly to leave. "Rather than making a clear and passionate Labour case for EU membership, Corbyn took a week’s holiday in the middle of the campaign and removed pro-EU lines from his speeches. "Rather than finding imaginative ways for Labour to present a united front and get its message across to wavering supporters, Corbyn vetoed a planned event featuring all Labour’s formers leaders."

16:33: A rumour that Caroline Lucas will join the shadow cabinet is nonsense according to Anoosh, who knows more about the inner workings of the Greens than some Greens do.

no truth in rumour that Caroline Lucas might join shadow cabinet. She hasn't had a conversation with Labour. — Anoosh Chakelian (@Anoosh_C) June 27, 2016

16:23 After the game of Where's George? it's time for Hunt the Boris. Neither Boris Johnson nor Michael Gove have turned up to the debate in the House of Commons today.

Boris was last seen in the pages of The Telegraph, where he said "Britain is part of Europe" and that voters were more interested in democracy than immigration.

16:06 Hilary Benn stands up in Parliament to cheers. Perhaps wisely, he sticks to an international question on influencing foreign policy in Syria and elsewhere.

15:52 Labour MPs have shouted "Resign" at Jeremy Corbyn in Parliament.

Corbyn struggled to say "the country will thank neither the benches in front of me nor behind for indulging in internal faction and manoeuvring at this time," above the noise.

15:29: Keir Starmer has resigned as shadow home office minister, saying that following yesterday and today's resignations, his situation has "materially changed" and it is "simply untenable now to suggest we can offer an effective opposition without a change of leader".

15:18: Here's where we are. Most of the shadow cabinet has resigned, and much of the frontbench with them. Two of the three biggest trade unions, the GMB and Unison, have given Corbyn a vote of somewhat equivocal confidence. There is a no confidence vote in Jeremy Corbyn from the PLP tomorrow. Corbyn is insisting that he will remain in post and will be a candidate in any leadership election. Well-placed sources insist that Iain McNicol has been given legal advice that Corbyn will need to seek 50 nominations from the PLP to stand.

15:11: Labour's leadership team in the Lords (Angela Smith, leader in the Lords, and Steve Bassam, Chief Whip) are writing to Jeremy Corbyn outlining their reasons for declining to attend shadow cabinet while he is leader and their approach moving forward. They have the full support of their frontbench team, who will continue to act as an opposition in the Lords but a remove from the leadership. (In practice, the Lords have been ploughing a seperate furrow since Corbyn's election.)

15:04: 4000 people are expected to attend* Momentum's rally in support of Jeremy Corbyn. They will hear speeches from Corbynite MPs and trade union general secretaries, with the FBU's Matt Wrack among them.

*have clicked "maybe attending" on Facebook.

14:44: Some pushback from that latest update. Paul Waugh at HuffPo says that "it's what they don't say that matters". I dunno, at some point fairly soon the big unions will need to back Iain McNicol up at the NEC if they're to keep Corbyn off the ballot. Are they in that place yet?

14:37: Or not. Unison have just released a statement in support of Jeremy Corbyn. The wind feels like it might be coming out of the plotters' sails a bit.

UNISON issues statement of support for Corbyn: “Tories are divided, but at this crucial time, Labour should not be." pic.twitter.com/Crm30iFbgi — Siraj Datoo (@dats) June 27, 2016

14:33: Just realised there is a nightmare scenario in which Corbyn neither resigns nor do we reach a point where we can say the crisis is over, locking the NS politics team in a perpetual state of liveblogging.

14:23: I just typed "this is why the Tory approach of throwing out just the top two, guaranteeing the winner has a genuine power base in parliament works better" then I remembered this would have meant a whole summer of Andy Burnham vs Yvette Cooper, a contest so boring and soul-crushing I actually felt my heartbeat slow a little thinking of it.

14:21: I said I would produce a full list of the resignees. I lied. Too much is happening. Just Rosie Winterton and Jon Ashworth unaccounted for from the shadow cabinet now.

14:18: Luciana Berger has resigned from the shadow cabinet.

I have spoken to Jeremy today and it is with great sadness that I have stood down from his Shadow Cabinet. pic.twitter.com/YRYiu7HRd0 — Luciana Berger (@lucianaberger) June 27, 2016

14:16: Update on that LYL no con. Yeah, I wouldn't read too much into that, its leadership at the moment has always been hostile to the Corbyn project. There is also a letter going around signed by over 200 members of Young Labour, which has several former Corbyn supporters on there but is largely made up of former supporters of Andy Burnham, Yvettte Cooper and Liz Kendall.

14:12: Somewhat equivocal statement from the GMB's general secretary Tim Roache.

GMB statement - a little bit for everyone pic.twitter.com/bwMUYgSigH — Sam Coates Times (@SamCoatesTimes) June 27, 2016

Something to please both sides in there.

14:06: Have been asked to do a list of all the exits so far. With you in just a minute.

14:02: Blimey. This is why the Watson playbook that worked against Tony Blair might not work this time.

Owen Smith asked Corbyn: "Are you prepared to split the party over this?" Corbyn said he didn't want to: "But if necessary...." — Jim Pickard (@PickardJE) June 27, 2016

13:56: London Young Labour's executive have passed a motion of no confidence in Jeremy Corbyn's leadership. Not sure what their political complexion is at the moment. I am reliably told by the left it is fairly right-wing at the moment, and from the right, etc, etc.

13:52: In other news, the Conservatives have announced their leadership timetable. Nominations will open on Wednesday and there will be a new leader in place by 2 September.

13:48: Better version of the joke I told at 13:29.

@stephenkb How can you tell Corbyn's cabinet DIDN'T come from Ikea? It'll fit in to a small hatchback. — lucien desgai (@lucien_desgai) June 27, 2016

13:46: 'In Dreams Begin Responsibilities' is the last episode of the brilliant TV show My So-Called Life, which struggled to find an audience and was cancelled after less than a year by short-sighted corporate executives. There's a column in that.

13:42: No word from Jon Ashworth, but he has changed his Twitter bio.

13:35: People keep asking me what the members think of all this. My sense is that there is a majority for change from the current approach but I'm not sure there's a candidate who can win that majority. People want someone who can keep the politics, sharpen up the competence and approach, and bring together more of the PLP. Not clear there is someone who fits that bill. As I wrote yesterday:

"Having called around this morning there is certainly some movement away from Corbyn, partly due to the Vice documentary and also due to the referendum campaign. My impression, however, is that the candidate they are looking for – someone who could have much of Corbyn’s politics but with greater political nous and the ability to bring together more of the PLP – doesn’t exist in the parliamentary party. There are some lower-ranked members of the 2010 and 2015 intakes who might fit the bill, but their time is far from ripe. It's also not clear to me how significant that movement away is in percentage terms - Corbyn won by 40 points and was 19 points clear of needing a second round, so his capacity to survive erosion is strong."

For what it's worth, Open Labour, the soft left pressure group, has called for a fresh leadership election in the light of the referendum result.

13:33: Angela Eagle just gave a very emotional interview on the World At One. She sounds close to tears. Listen to it here (about five minutes back).

13:29: Ooh, I've just thought of a joke. (Lower your expectations.)

Q: How can you tell Corbyn's Shadow Cabinet came from IKEA?

A: It took days to assemble but it fell over the second a fat man leaned on it.

(I told you to lower them.)

13:26: Team Corbyn are still insisting they will be able to fill the gaps with some "surprising names". At this point, name of any sort would be fairly surprising.

13:23: Nick Thomas-Symonds, author of a very good biography of Attlee and a biography of Nye Bevan I haven't got around to reading yet, has resigned as shadow employment minister.

It is with enormous regret that I have resigned as Shadow Employment Minister. pic.twitter.com/KWe52wgVQc — Nick Thomas-Symonds (@NickTorfaenMP) June 27, 2016

13:17: One woman rebuttal service.

Sign petition against Labour MPs who are putting their careers before the Party and the country. https://t.co/St8pMZIiGO @PeoplesMomentum — Diane Abbott MP (@HackneyAbbott) June 27, 2016

13:13: Good question via Twitter: the plotters' favoured approach will be a coronation. But who? It can't be any of Dan Jarvis, Chuka Umunna, Heidi Alexander, Jon Ashworth, Gloria DePiero or anyone else tipped to do it long term, as that would likely trigger a full-blooded leadership race. My guess is Tom Watson or Angela Eagle. But not inconcievable that Yvette Cooper could do it.

13:09: That last update has generated a lot of texts saying the same thing "What about Ivan Lewis?" A question that is also its own answer.

But seriously: Ivan Lewis, sacked by Corbyn via text message in his first reshuffle, is running for Greater Manchester mayor and has called for Corbyn to go. My instinct is that whatever happens, Burnham has done his chances of scooping up the Greater Manchester mayor no harm at all, though.

13:05: The only members of the shadow cabinet who are still in the same jobs they were this morning are: Jeremy Corbyn, John McDonnell, Andy Burnham, Jon Ashworth, Rosie Winterton and Luciana Berger. Both Berger and Burnham are seeking the nominations for the new metro mayors for Merseyside and Greater Manchester respectively.

13:04: Oh, that's a shame. Labour's excellent Women and Equalities lead, Kate Green, has resigned.

13:02: On Lisa Nandy, can I reccomend my colleague Anoosh Chakelian's long piece on Nandy's constituency? It's a great read.

12:58: Jim Waterson has this tidbit on the new shadow cabinet.

Corbyn's team pledge to fill all open shadow cabinet positions today and promise to include some "surprising names". — Jim Waterson (@jimwaterson) June 27, 2016

Waiting by the phone here. My peerage may yet come.

12:56: My MP, Diane Abbott, currently on course to be shadow secretary of state for everything in addition to her new berth at Health, is not having any of this coup nonsense.

Join me at 18.00 today at Parliament Square. @PeoplesMomentum protest for Jeremy Corbyn & against self-serving coup https://t.co/jOTGBs6HcP — Diane Abbott MP (@HackneyAbbott) June 27, 2016

12:50: Team Corbyn tell George he will fill the vacancies, and the new appointments are "not just lefties". If anyone in Team Corbyn is reading, I am willing to accept a peerage.

12:49: Reminded of Eric Varley, the industry secretary under Jim Callaghan and from the same tradition on the Labour right as Tom Watson, who once quipped that "'it's carrying democracy too far if you don't know the result of the vote before the meeting."

12:46: It's still not clear who the alternative to Corbyn is. Owen Smith and Lisa Nandy have called on Tom Watson to assume the position. I am hearing that Yvette Cooper is still interested and indeed intervened to put pressure on several wavering shadow cabinet ministers to resign but that might trigger a full-blooded contest, which the plotters are keen to avoid.

12:42: To lose one Eagle is unfortunate. To lose two looks like the culmination of an organised plot. Maria Eagle quits the shadow cabinet.

12:40: Nia Griffith has released a statement on her resignation.

“This morning I met with Jeremy Corbyn, to discuss the much needed leadership and unity that the Party needs in the light of the referendum aftermath and a potentially imminent general election.

However I do not feel that our discussions this morning gave me the confidence that he could now achieve this unity. I have therefore tendered my resignation as Shadow Secretary of State for Wales.

I made clear to Jeremy that I have always admired his commitment to the causes that matter to him, but last week’s referendum result and the likelihood of an early general election mean that the party now requires new leadership. Jeremy has lost the confidence of the party, including many members who initially supported him, and he should now do the honourable thing and resign.

It has been a tremendous privilege to serve as Shadow Welsh Secretary for the past nine months, in particular to play my part in re-electing a Welsh Labour Government which is now more important than ever before.”

Her juniors, Susan Elan Jones and Gerald Jones have also resigned.

12:38: Episode 113: The One With All The Resignations.

12:37: Imagine if the Labour party were a long-running show and you were watching it after a year away from it.

12:33: Yesterday I said that I thought it was more likely that Jeremy Corbyn would survive than not. People are asking me what I think now. Honest answer: search me, guv. Two things I know to be absolutely true: Labour never gets rid of its leaders, and you never bet against Tom Watson when control of the Labour party is on the line. They can't both be true.

12:31: Am hearing that Nia Griffith, shadow secretary of state for Wales, and her junior ministers, will be next to quit.

12:27: It's all kicking off. And not just in the Labour party. Julia's got the inside track on what's going on in the markets and why you should care:

"Some readers may be tempted to shout “Good riddance” as shares plummet and investors miss out on profits. But the market turbulence is telling us something more serious about our economy than simply a tale of profit and loss."

12:26 Stephen has come back from wherever he was - a meeting, probably, or primal scream therapy - and is taking over this liveblog. It's been a gas, guys.

12:25 Apparently George hasn't got the message that we're meant to call anyone who opposes Corbyn a "Blairite" these days.

Angela Eagle and John Healey resign - soft left revolt completed. — George Eaton (@georgeeaton) June 27, 2016

12:23 The Guardian has a video of John McDonnell saying this morning that Jeremy Corbyn should not resign, saying they should look to the interests of the country, rather than "party political" interests.

12:21 They're coming thick and fast now. John Healey has hand delivered his resignation letter - very classy. (See 11:50)

I have just hand-delivered Jeremy Corbyn my resignation letter. pic.twitter.com/ntnHFzeaXN — John Healey MP (@JohnHealey_MP) June 27, 2016

12:20 A good thought from Stephen:

The Eagle has flown the coop to join the coup! (Sorry.) Just one thing, tho: that leaves a shadow cabinet position on Labour’s ruling NEC in Corbyn’s choosing, which could turn out to be crucial later on.

If Maria stays, will we have spread Eagles?

12:16 EAGLE DOWN: Angela Eagle has posted her resignation letter, saying Labour needs a leader who can "unite rather than divide" the Labour Party.

With deep regret, and after nine months of trying to make it work, I have today resigned from the Shadow Cabinet pic.twitter.com/tX7SPDyTIZ — Angela Eagle (@angelaeagle) June 27, 2016

12:12 Meanwhile, over in Ireland Taoiseach Enda Kenny is addressing the Dáil on Brexit. He says that "the closer the UK is to the EU", the better it is for Ireland - notable, given that other countries are keen to give the UK the cold shoulder as soon as possible.

You can watch a live stream here.

12:11 From George, reports that Keith Veness has said Corbyn "should have come out openly for Brexit". (See 11:18, when Chris Bryant told the BBC that he suspects Corbyn voted "out".)

Corbyn's friend and former agent Keith Veness says that "JC should have come out openly for Brexit". Interesting phrasing. — George Eaton (@georgeeaton) June 25, 2016

12:09 The Buzzfeed bingo card is nearly full - here's the latest update, if you're playing along at home. (Or at your desk, if you're in work but can't focus because there's too much news.)

Here's what's left of Saturday's Labour shadow cabinet. Very close to a bingo. https://t.co/Ru2pQwxosT pic.twitter.com/Ic7RYU1p7R — Jim Waterson (@jimwaterson) June 27, 2016

12:06 Some hot goss from Anushka Asthana: apparently Smith, Nandy and co weren't expecting to call for Corbyn to go...

Nandy, Smith, Healey, Griffiths and Green went in not expecting to call for Corbyn to go but furious that "McDonnell barged in" I'm told — Anushka Asthana (@GuardianAnushka) June 27, 2016

11:59 Lisa Nandy has ruled herself out of a leadership contest.

Wigan MP, Lisa Nandy, resigns from Jeremy Corbyn's shadow cabinet. She says she won't stand in a leadership contest. — BBC Radio Manchester (@bbcradiomanc) June 27, 2016

11:53 Lisa Nandy and Owen Smith, both firmly in Labour's soft left, have resigned, calling for Tom Watson to become the temporary leader.

Even more shadow cabinet members resign and call for Tom Watson to become temporary leader. pic.twitter.com/LvsNl9JHJv — Jim Waterson (@jimwaterson) June 27, 2016

11:50 Resignation by Twitter and Facebook is becoming a bit tired now. What other media would you like to see MPs use to resign? (Personally, I think a stereo held in the air Say Anything-style on College Green would be quite good).

Do share your ideas @stephanieboland before a serious political journalist takes the liveblog back.

11:47 Another one down: Jenny Chapman has posted her resignation from the shadow education team to Facebook.

11:44 Good news: after a recent trip to Ireland I forgot to change some euro back, and will now be buying a charming maisonette in Bayswater. You're all invited to the housewarming.

At 0930 Boris Johnson: "the pound is stable" - it has now fallen to a new 31 year low versus the dollar pic.twitter.com/41swM1WGtK — Faisal Islam (@faisalislam) June 27, 2016

11:40 Aside from the fact that Eagle, Smith and Nandy sounds like a prog rock supergroup, their resignations would be particularly significant given recent rumblings (see George at 11:04) about potential leadership bids.

Eagle, Smith and Nandy significant - they're all potential leadership contenders https://t.co/jvy0nLXZk3 — Sebastian Payne (@SebastianEPayne) June 27, 2016

11:37 Hearing that further high-profile resignations may be imminent. Time to put the kettle on, folks.

11:35 For those of you into that sort of things, Ladbrokes have published the latest odds for leaders of both the Conservative and Labour Parties. No mention of the duck (11:16).

11:28 Seumas Milne says that they're not having trouble filling the new shadow cabinet: "there's always people".

Milne saying they're not having problems filling shadow cabinet posts, "there's always people" — Vincent McAviney (@VinnyITV) June 27, 2016

11:24 Jess Phillips has posted her resignation letter, signing off with a "take care"...

11:22 A spokesperson for German premiere Angela Merkel has told a briefing that informal discussions will not begin before Britain invokes Article 50.

One thing is clear: before Britain has sent this request there will be no informal preliminary talks about the modalities of leaving.

11:18 Chris Bryant has told BBC News that he thinks Jeremy Corbyn may have voted to leave the EU.

Bryant says Corbyn refused to tell him whether he had voted to leave the EU #Brexit — Nick Eardley (@nickeardleybbc) June 27, 2016

11:16 This probably wouldn't be the most absurd thing to happen since Friday, really.

Prime Mallard: duck makes bid for Downing Street https://t.co/OiKMUFhamD pic.twitter.com/KHeQMGGwWG — The Telegraph (@Telegraph) June 27, 2016

11:09 Muddy? Sleep-deprived? Living in a tent amidst chaos? Just a sort of Defense training day, isn't it, Glastonbury? (Actually, Clive Lewis has completed a tour of Afghanistan: you can read about his military experience here.)

THICK OF IT ALERT: Labour source: Clive Lewis, is apparently on is way back from Glastonbury and may not make his first Defence Questions! — Darren McCaffrey (@DMcCaffreySKY) June 27, 2016

11:06 Running out of time to make cups of tea between these resignation letters now. Roberta Blackman-Woods has resigned from the front bench, saying that part of being Labour leader is to "connect with the public" and represent a range of opinions within the party.

I have just resigned my position on the frontbench for the reasons as set out below in my letter to Jeremy pic.twitter.com/wtYq5lgt9D — R. Blackman-Woods (@robertabwMP) June 27, 2016

11:04 George hears from one of his sources that Lisa Nandy will stand against Corbyn.

Lisa Nandy will stand against Corbyn, Labour source tells me. — George Eaton (@georgeeaton) June 27, 2016

11:03 Here's Karin Smyth's letter to her constituents this morning. My favourite bit? She's not taught her spellchecker the word "Corbyn" in all this time.

Here’s my letter to Bristol South Labour Party members this morning pic.twitter.com/mcFgyMC9YV — Karin Smyth MP (@karinsmyth) June 27, 2016

11:00 Ruth Smeeth has joined the growing number of MPs who have resigned. (I've lost track of what number we're at: can someone tweet it at me?)

It's with a heavy heart that I have just resigned as PPS to the Shadow Northern Ireland & Scotland teams. — Ruth Smeeth MP (@RuthSmeeth) June 27, 2016

10:57 George reports that, as we said above, Watson's suggestion that Corbyn resign was "implicit at most".

BBC report that Watson called for Corbyn to resign is wrong. It was implicit at most. — George Eaton (@georgeeaton) June 27, 2016

10:54 The Press Association reports that the executive of the Conservative 1922 committee will meet today to discuss the rules and timetable for the party's leadership challenge. They are expected to use the same system that saw David Cameron elected in 2005.

10:50 The BBC has revised its story on Tom Watson. The story is now more in line with what the majority of the lobby have been reporting: Watson has not explicitly called on Corbyn to resign, but has stressed the seriousness of his position and warned him he faces a concerted challenge to his leadership.

10:47 Diana Johnson, who resigned from her post in the Shadow Foreign and Commonwealth Office this morning, has posted the full text of her resignation letter to Twitter. She calls Corbyn "a very principled and decent man", but says she does not believe he possesses "the vital leadership qualities we need at this crucial time".

This is the text of my resignation letter sent to Jeremy Corbyn. pic.twitter.com/NoEyBywinA — Diana Johnson (@DianaJohnsonMP) June 27, 2016

10:43 The Times Red Box is now reporting that a growing number of Labour MPs are in "serious" discussions to consider the possibility of an SDP-style split. Hannah McGrath suggests that any breakaway group would need to muster over a hundred MPs to make a play at forming a new party.

10:41 The BBC is now reporting that Tom Watson has called on Jeremy Corbyn to resign.

10:38 Meanwhile, the resignations contginue: Alex Cunningham, Shadow Minister for the Natural Environment, tendered his this morning.

10:32 Boris Johnson has said that "Project Fear" is over. Nicola Sturgeon concurrs.

Indeed, Boris. Project Farce has now begun - and you are largely responsible. #EUref https://t.co/1TExKvEvfT — Nicola Sturgeon (@NicolaSturgeon) June 27, 2016

10:28 With the pound falling again this morning and the Governer of the Bank of England allocating £250,000,000,000 to prop up the currency, the BBC now reports that RBS and Barclays have both been suspended from trading after shares tanked more than 8%, triggering automatic "circuit breakers" designed to allow the value of the stock to be re-evaluated before automatic trading resumes.

This is, as you may have guessed, concerning at best.

10:25 Fairly sure the front page of the Metro this morning is how every sleep-deprived political journalist in the country feels right now...

10:15 The BBC reports that Nia Griffith, Shadow Welsh Secretary, is meeting Corbyn to ask him to step down as Labour leader. Yesterday, Welsh First Minister Carwyn Jones said he would "wait to see" how the situation develops before making a statement for or against Corbyn's leadership.

Shadow Welsh Secretary Nia Griffith meeting @JeremyCorbyn to ask him to step down as @UKLabour leader https://t.co/2tJze9H8LU — BBC Breaking News (@BBCBreaking) June 27, 2016

10:11 Emily Thornberry is on Sky, and is not coping well with the metaphors of the day.

Thornberry on BBC: "I don't think it's like the Eng taem with half the players refusing to go on the pitch. It's a third of them." — Stephen Pollard (@stephenpollard) June 27, 2016

10:01 Guardian political editor Anushka Asthana is reporting that a meeting has now taken place between Tom Watson and Jeremy Corbyn, but understands that Watson did not ask Corbyn to stand down (as some presumed would happen).

Meeting between Tom Watson and Jeremy Corbyn has taken place. I understand that Tom didn't urge JC to resign... — Anushka Asthana (@GuardianAnushka) June 27, 2016

10:00 Stephanie here, briefly helming the liveblog so the politics desk can go outside and scream at the sky. Tips? Hyperventilating and need a chat? I'm on @stephanieboland

9:48: Funny how things work out. Most Labour peers are of that 1980s generation that didn't split off and form the SDP. Now they're a party within a party.

09:30: Following conversations with Labour peers, Labour's Chief Whip, Steve Bassam, and leader in the Lords, Angela Smith, will not attend shadow cabinet meetings while Corbyn is in post.

9:19: Stephen here, helming the liveblog so Julia can get to work. Keep it here for the latest.

After a weekend of Brexit turmoil, we're expecting a little more leadership from senior politicians. But in the meantime, here's what happened over the weekend:

- Eleven shadow cabinet ministers and four other shadow ministers have resigned, following the sacking over shadow foreign secretary Hilary Benn.

- Tom Watson has failed to back Jeremy Corbyn's leadership. Labour's deputy leader said that "we are heading for an early general election and the Labour Party must be ready to form a government".

- The SNP's Nicola Sturgeon has warned that the Scottish Parliament could veto the UK's withdrawal from the EU.

- Boris Johnson has been sighted at his farmhouse in Oxfordshire, but so far we've heard no more detail from any of the leading members of the Leave campaign about their post-Brexit plans. The Chancellor, George Osborne, has also not been seen in public since Friday.

09:06 Stephen Bush has written that we're beginning to see what the Conservative hope for Brexit is, and it's grim. You can read his account of the deal that right-wing politicians might stomach here.

08:48 When will we next hear from Angela Eagle, the widely-respected Shadow Business minister? Interestingly, the Shadow cabinet wikipedia page describes her as serving from 2015-16. However, we haven't heard a peep from her on Twitter in the last 24 hours. We understand though that she's likely to stay...

08:41 Jeremy Corbyn has lived up to John McDonnell's pledge to replace the resigning ministers, and has appointed a new Shadow cabinet:



Shadow Foreign Secretary - Emily Thornberry

Shadow Health Secretary – Diane Abbott

Shadow Education Secretary – Pat Glass

Shadow Transport Secretary – Andy McDonald

Shadow Defence Secretary – Clive Lewis

Shadow Chief Secretary to the Treasury – Rebecca Long-Bailey

Shadow International Development Secretary – Kate Osamor

Shadow Environment Food and Rural Affairs Secretary – Racheal Maskell

Shadow Voter Engagement and Youth Affairs – Cat Smith

Shadow Northern Ireland Secretary – Dave Anderson

08:33 Stephen Kinnock, assistant to Shadow Business minister Angela Eagle, has resigned and published his resignation letter on Twitter.

He writes:

"British politics will be completely dominated in the coming years by the Brexit negotiations, and I do not believe that you have the requisite skills or experience to ensure that there is a strong Labour voice at the negotiating table."

It is with regret that this morning I have resigned as a PPS pic.twitter.com/0KFG1bhRaD — Stephen Kinnock MP (@SKinnock) June 27, 2016

08:17 Former Labour Chancellor Alistair Darling is on Radio 4 Today and he makes the financial crisis sound like a piece of cake.

He says it isn't clear what to do: "I'm more worried than I was in 2008.

"We cannot have a four month period in which nothing happens."

The world wants to know Britain's policy on the free movement of people, and how laws might change, he says.

While Darling has been speaking, the FTSE 100 has recovered slightly, although it's still 0.33% down on Friday night. The FTSE 250, however, which is more indicative of the British domestic economy, is down 0.9%.

08:02 The FTSE 100 and FTSE 250 have just opened, and both have immediately plummeted.

Meanwhile, more on the resigning MPs.

Anna Turley is resigning as Shadow Minister for Civil Society. She writes:

"This is a very hard letter to write. We have been friends for some years and as my former MP I hold you in very high regard as one of the kindest and most committed public servants in politics. "However, I am sorry to say it has become clear beyond doubt to me that you and your team are not providing the strong, forward looking and competent leadership we need."

She says the "lacklustre referendum campaign" brought this home, but adds the leadership is not in touch with her local constituents.

In a blow to the Corbyn camp's claim that it has a mandate from members, Turley says:

"I have had a number of party members, and many many Labour voting members of the public, tell me this weekend that they do not have confidence in your leadership."

Here's a tweet from Diana Johnson:

After @hilarybennmp sacking yesterday I have now written to Jeremy Corbyn to resign as a Shadow Foreign and Commonwealth Office minister. — Diana Johnson (@DianaJohnsonMP) June 27, 2016

07:50 More Labour MPs are resigning.

Diana Johnson has resigned from her post as Shadow Foreign and Commonwealth Office minister. Anna Turley is resigning as Shadow Minister for Civil Society. And according to Radio 4 Today, two more junior ministers, Neil Coyle and Labour's housing and planning spokeswoman also plan to resign from positions of responsibility.

This brings the number of shadow ministers resigning to 15, although not all are full members of the cabinet.

07:45 The Labour MP Wes Streeting has been tweeting about something that has been gathering concern on social media over the weekend: racism against immigrants.

He tweets: "One of my Irish constituents told she should "go home" twice in two days. We must not become that kind of country."

Streeting was responding to reports that a black British councillor had been racially abused. Meanwhile, The Cambridge News reported messages demanding "no more Polish vermin" have been posted through doors in Huntingdon.

I don't want to spoil your breakfast by repeating all the racist bile that's being reported, but you can find some of the "worrying signs" being collected by concerned individuals in this group on Facebook.

07:39 Lucy Powell, who resigned from the Shadow Cabinet yesterday, is talking on the BBC Radio 4's Today Programme. She says she is "not concerned" by the threat of deselection by trade unions or others.

She says she hopes Jeremy Corbyn "does not drag this out longer than necessary".

07:37 Pundits seem divided on whether Osborne announced his "Punishment Budget" or not. He certainly struck a less apocalyptic tone than he did in the run up to the referendum, with plenty of lines about the strong economy, and the Bank of England's preparations.

On the other hand, he did just shift the burden of "action" over to whichever unlucky sod sits in the Treasury by autumn.

07:20 Osborne is speaking, 40 minutes before the markets open. He strikes a reassuring tone, but there are some worrying messages if you read through the lines. He also says he will address his role "within the future of the Conservative party" in the coming days.

He says he has spoken to finance ministers of other major countries, chief executives of financial institutions and other central banks. The Bank of England and the Treasury have been contingency planning for weeks. The Bank of England has £250billion of funds to continue to support banks and the smooth functioning of markets. As he puts it: "The British economy is fundamentally strong, it is highly competitive and we are open foor business."

But, extending Cameron's nautical metaphor, he warns: "It will not be plain sailing."

Osborne is also cautioning against triggering Article 50 - the legal exit from the EU - too soon. He said:

"Only the UK can trigger article 50 and in my judgement we shouldd only do that when there is a clear view about what arrangement we want."

The Chancellor repeats many of his favourite phrases about the UK's strong economy and how he has fixed the "hole in the roof" during better economic times. But he adds:

"It is already evident that some firms are already pauing their decision to invest or hire people. This will have an impact on the economy and public finances. There will need to be action to handle that."

As with Cameron, he says this is a job for the new PM's Government, which could happen as late as the autumn. That leaves businesses several months of uncertainty. And he ends by making a plea against protectionism:

"I do not want Britain to turn its back on Europe or the rest of the world."

07:10 No sign of Osborne yet. In the meantime, Boris Johnson has written an article that is basically a pitch for leadership - and presumably he collected a hefty fee for it too. He starts by dismissing the common view the EU referendum was about immigration:

"It is said that those who voted Leave were mainly driven by anxieties about immigration. I do not believe that is so. After meeting thousands of people in the course of the campaign, I can tell you that the number one issue was 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."

06:58 MONDAY: Morning, Julia here. We're expecting a statement from the Chancellor, George Osborne, who has been AWOL since the result on Friday. You can even play a game - Can You Find George Osborne?

It's crucial Osborne speaks, because the pound is still falling, and a snap poll from the Institute of Directors suggests one in three business leaders will cut investment in their business as a result. Two in three think the result is negative for their business and a quarter will put a freeze on recruitment.

Simon Walker, Director General of the Institute of Directors, said: "We can’t sugar-coat this, many of our members are feeling anxious. A majority of business leaders think the vote for Brexit is bad for them, and as a result plans for investment and hiring are being put on hold or scaled back.”

00:07 At the end of one of the most remarkable days in Labour's history, here's my extended take on where the party stands tonight. Julia will be back with more tomorrow morning, with at least 20 more frontbench resignations expected. George.

22:38 The Mirror reports that John Spellar, a veteran of Labour's 1980s wars, could run as a "stalking horse" candidate against Corbyn. This would trigger a contest in which potential successors, such as Tom Watson and Angela Eagle, could then stand. Barry Sheerman and Margaret Hodge have also been touted for the role.

22:30 George here. It's notable that among the shadow cabinet members who haven't resigned are Angela Eagle and Jon Ashworth, a close ally of Tom Watson (and the only one not to have left). One theory is that both have remained in order to keep their seats on Labour's NEC, which would determine whether or not Corbyn makes the ballot automatically.

21:57: Jeremy Corbyn has released a statement. And it seems pretty defiant. After commenting on the need to protect workers' rights and reflecting on economic inequality, he says:



“I was elected by hundreds of thousands of Labour Party members and supporters with an overwhelming mandate for a different kind of politics.



“I regret there have been resignations today from my shadow cabinet. But I am not going to betray the trust of those who voted for me – or the millions of supporters across the country who need Labour to represent them.



“Those who want to change Labour’s leadership will have to stand in a democratic election, in which I will be a candidate.



“Over the next 24 hours I will reshape my shadow cabinet and announce a new leadership team to take forward Labour’s campaign for a fairer Britain - and to get the best deal with Europe for our people.”

He ain't going quietly.

21:41: From Bryant's resignation letter:

"Last week changed everything. A major plank of Labour's longstanding economic and foreign policy was defeated in the referendum and we effectively handed the right in this country their biggest victory in a century. "The Prime Minister must take the lion's share of the blame for that defeat and he has honourably resigned, but your inability to give a clear, unambiguous message to Labour voters significantly contributed to the result. "You left many Labour voters uncertain as to our party's position. You made speeches that undermined the campaign to stay in the EU. You and John McDonnell regularly attacked the Remain campaign. Even on polling day there were people who thought you really wanted us to leave."

And then he sticks the knife in:

"Your ambivalent attitude in the campaign was a betrayal of the Labour Party and the wider Labour movement and it has let down a whole generation of young people who desperately hoped to hear a strong, cogent and inspiring pro-EU message from Labour."

21.20: Chris Bryant, Shadow leader of the House of Commons, has just announced his resignation from the Shadow Cabinet. He is the eleventh MP after Benn to resign, and the twelfth from the Shadow Cabinet altogether.

He called for someone new "to unite and lead Labour".

Bryant's resignation means roughly a third of the Shadow Cabinet has gone in 24 hours.

I’ve just spoken to Jeremy Corbyn and tendered my resignation from the Shadow Cabinet. We need someone new to unite and lead Labour. — Chris Bryant MP (@RhonddaBryant) June 26, 2016

19:20 Announcing his resignation, Turner tweeted: "With a very heavy heart I have notified Jeremy Corbyn that I have resigned from the Shadow Cabinet. Letter to follow."

19:12 Helen here to say Karl Turner has resigned, following Lord Falconer. So we're up to 10 departures so far, plus Benn.

18:34 On Watson's position, a source says that he wants "the leadership handed to him on a plate" with backing from grandees across the party.

18:28 On the leadership, a Labour source tells me: "Don't rule out Yvette. Only grown-up candidate and I believe she wants it". The source emphasised the need to look beyond the task of "unifying the party" and towards that of EU negotiations. Cooper, he suggested, was best-qualified to lead at a moment of "national crisis".

18:15 As I reported on Friday, many in Labour believe the party needs a "Michael Howard figure": an interim leader to see the party through an early general election. Watson and Angela Eagle, the shadow First Secretary of State and shadow business secretary, are the key contenders for that role.

17:46 Charlie Falconer, the shadow justice secretary, has just become the ninth shadow cabinet member to resign.

17:24 Having returned from Glastonbury (where he was partying at 4am this morning), Tom Watson has spoken. Labour's deputy leader, who wields his own mandate, said: "I was deeply disappointed to see Hilary Benn sacked in the early hours of this morning and equally saddened that so many talented, able and hard-working colleagues felt they had to leave the shadow cabinet.

"My single focus is to hold the Labour Party together in very turbulent times. The nation needs an effective opposition, particularly as the current leadership of the country is so lamentable. It's very clear to me that we are heading for an early general election and the Labour Party must be ready to form a government. There's much work to do. I will be meeting Jeremy Corbyn tomorrow morning to discuss the way forward."

Though that's not a formal endorsement of the coup, it's far from a rejection. Watson's warning of an early election and the need to be "ready to form a government" is a clear signal that he doesn't believe Corbyn is up to the task. Nowhere does he defend his leadership or his mandate. When he sees Corbyn tomorrow morning, one assumes it will be to tell him that "the way forward" is for him to go.

17:12 As Corbyn contemplates the struggle of forming a fresh shadow cabinet, Simon Danczuk, the Rochdale MP suspended from Labour last December, has cheekily offered his services. "Have phoned Jeremy & said if required, I'm prepared to serve. I am prepared to make that sacrifice for the Labour Party," he tweeted.

16:49 Shadow Northern Ireland secretary Vernon Coaker has become the eighth shadow cabinet member to resign. I reported that the Gedling was a "dead cert" to walk at 13:25. Coaker, formerly shadow defence secretary, is one of the strongest supporters of Trident renewal and would have resigned had unilateral disarmament become party policy.

16:18 A Corbyn ally who has been in touch with the Labour leader tells me that he is "not wavering" and will seek to form a fresh shadow cabinet.

16:03 George here again. I spoke earlier to Jon Trickett, one of just five shadow cabinet members to publicly back Corbyn. Here's what he told me: "The central task facing Britain is what kind of country we're going to have now that we've voted for Brexit. The central task facing the Labour Party is to offer a different vision for a different kind of Britain than the one that's going to be offered by the small-minded Little England, xenophobic group around Boris Johnson, Gove and Farage.

"The only way that Labour can do that is to be united and focus totally on doing that, presenting an alternative vision. All of this is a reckless distraction from our central task. It's time that people faced the facts: Jeremy is our leader, he has the overwhelming support of the party and we've got to get on with being an opposition and offer an alternative vision for the country."

15.27 Helen here - I'm signing off as there hasn't been a resignation for at least 20 minutes. Follow us on Twitter or Facebook to make sure you don't miss the latest updates.

15.14 On which note, Big Len has written a piece in the Guardian attacking the rebels. The Unite leader says: "Hilary Benn and others have decided this is the moment to let the Tories off the hook, turn Labour inwards and try to set aside the overwhelming result of a party leadership election held less than 10 months ago."

14.57 Worth remembering that the unions yesterday released a statement in support of Jeremy Corbyn. Unite's Len McCluskey is sticking to that today:

Unite leader Len McCluskey tells me it's "pathetic and futile coup" against Corbyn, "drip-fed". Says Tom Watson will back Corbyn — Michael Crick (@MichaelLCrick) June 26, 2016

The second line is interesting, too - Tom Watson emerging in his wellies to back the leader would take the wind out of the plotters' sails. It would also come as a surprise to many MPs who assume he must have known what was about to happen.

14:26 Stephen has written on what the plotters are thinking - and how they might have been emboldened the thought that Corbyn would need MPs' approval to get back on the ballot.

What appears to have happened is that Iain McNicol, the party’s general secretary, has received legal advice that he should not put Corbyn on the ballot paper unless the parliamentary Labour party does so – advice that he is willing to put his job on the line to follow.

14:20 Earlier, Channel 4's Michael Crick briefed that the Corbyn coup was being plotted in a group on Snapchat. As our younger readers will know, there's no such thing. (Presumably his source means WhatsApp, which lots of Labour MPs use for secure communications.) The happy side-effect is that I am now getting Snaps with jokes related to the shadow cabinet. Every day brings something new in this job, it truly does.

14:01 This tweet raised a wry smile. It's unprecedented to have the government and opposition in such turmoil at the same time. Never mind the fact we don't have any idea what kind of Brexit deal will be negotiated - will we be part of the EEA? Will we accept freedom of movement? When will we trigger Article 50 and start the process? David Cameron wants to wait for a leadership election, but will European leaders let him? Never mind Iain Duncan Smith saying one of the flagship pledges of the Leave campaign - that £350m a week which goes to the EU should instead go to the NHS - was more of a suggestion. Or Liam Fox saying that, actually, the new Tory leader - and prime minister - shouldn't be announced at Tory party conference, but instead there should be a beauty parade of candidates there. And that's before we've got to Nicola Sturgeon's declaration that a) she will seek a second Scottish independence referendum, and b) she could try to block Brexit. In times like this, Tim Farron is a beacon of hope and stability. Thank you Tim.

Britain after #Brexit summed up in one photo pic.twitter.com/aqpxFlJvXm — Andrew MacG Marshall (@zenjournalist) June 26, 2016

13:58 Anyone trying to gauge the depth of this rebellion - you have my sympathies. The reason the lobby's collective ears pricked up when Seema Malhotra resigned is that she has been loyal to the leadership, and introduced Corbyn at his speech yesterday.

13:56 Karen Buck, the Labour MP for Westminster North - and no one's idea of a "usual suspect" in terms of acting against a Labour leader - has tweeted her unhappiness with Corbyn:

13:52 Momentum, the group which grew out of Jeremy Corbyn's leadership campaign, is organising a demonstration in support of the Labour leader in front of parliament tomorrow at 6pm.

"The future is uncertain. After a Brexit vote we are in a time of national crisis, Cameron has resigned and we will likely have a general election with the potential of Britain lurching yet further to the right. A small number of Labour MPs are using this as an opportunity to oust Jeremy, disrespect the Labour membership who elected him and to disregard our movement for a new kind of politics.

We cannot let this undemocratic behaviour succeed. Join us at 6 pm outside Parliament tomorrow, Monday 27 June. The Parliamentary Labour Party will be meeting inside, so let's make sure they can hear us, the Labour Party members and voters outside. "

13:50 Jeremy Corbyn has emerged from his house in north London, and got into a people carrier with his wife. Probably not off to visit a nice National Trust property, or pop to the garden centre. He didn't answer reporters' questions about whether he would resign.

.@JeremyCorbyn leaves his house in North London during a day of resignations among his shadow cabinet https://t.co/xPAoJRqQHS — Sky News (@SkyNews) June 26, 2016

13:48 Kerry McCarthy has tweeted her resignaton letter, which says she "does not doubt your personal commitment to your longheld principles" but believes that "a new leader is needed".

13:45 Seema Malhotra resigns. That makes seven.

13:43 Helen here, back from tellygeddon on College Green at Westminster, allowing George to have lunch. The latest update is that Tom Watson was not on his expected train back from Glastonbury.

13:25 A senior Labour MP tells me that Chris Bryant and Vernon Coaker are "dead certs" to resign from the shadow cabinet. That would make eight.

13:22 It's notable that Powell and McCarthy, the two latest resignations, are both from the soft left of the party. THis will make it harder for Corbyn's allies to frame this as a "Blairte" revolt.

13:16 I earlier reported (08:52) that Welsh First Minister Carwyn Jones had joined the revolt. Welsh Labour have been in touch to say that this is not the case. Here's what he said: "Clearly it makes it very difficult if half the shadow cabinet team has resigned, then there’s a division in the shadow cabinet that would need to be healed. At the moment I've just heard the news and I don’t know what the circumstances are. We will have to wait to see how the situation develops throughout the day."

13:09 Shadow environment secretary Kerry McCarthy has become the sixth shadow cabinet member to resign.

13:06 Andy Burnham has tweeted that he won't be joining the revolt. "At an uncertain time like this for our country, I cannot see how it makes sense for the Opposition to plunge itself into a civil war.

"I have never taken part in a coup against any Leader of the Labour Party and I am not going to start now.

"It is for our members to decide who leads our Party & 10 months ago they gave Jeremy Corbyn a resounding mandate. I respect that & them."

12:59 And Powell has gone too. Her resignation letter can be read here.

12:49 Shadow transport secretary Lilian Greenwood has become the fourth shadow cabinet member to resign.

Shadow education secretary Lucy Powell is expected to be next.

12:44 Sky News is reporting that Andy Burnham, who is running to be Labour's Manchester mayoral candidate, will not be among those resigning today.

12:39 A Corbyn ally tells me that that there is "legal advice" stating that he would automatically make the ballot if challenged. He added: "He's not going to give in. He's a steady, steady individual beneath his reasonable gentleness. He's definitely going to be on the ballot paper, there's no question about it whatsoever."

12:23 Julia writes: "Hilary Benn and John McDonnell appeared in quick succession this morning to debate Jeremy Corbyn's future as the leader of the Labour Party. But underpinning this is a wider debate about Labour's electoral strategy. Benn says he resigned as a matter of conscience because Corbyn is not a leader capable of winning an election. McDonnell, though, reminded listeners and any Labour rebels out there that it is only Corbyn that has succeeded in winning the loyalty of party members - that army of door knockers and campaign volunteers."

11:47 The hope among Labour MPs is that Corbyn will "do the decent thing" and resign if (or rather when) he loses the confidence vote due on Tuesday. They are convinced they will win a majority but believe that reports of "80 per cent support" are wide of the mark.

11:40 Labour's only Scottish MP, Ian Murray, has just resigned as shadow Scotland secretary. As I noted earlier, this means the job will have to be done by a non-Scottish MP or a peer.

11:21 Shadow Scotland secretary Ian Murray (see 09:11) and shadow transport secretary Lillian Greenwood are expected to be the next to resign.

11:11 Shadow minister for young people Gloria De Piero has become the latest to resign. It's worth noting that De Piero is a close ally of Tom Watson (she's married to his aide James Robinson). Many will see this as a sign that the coup has the tacit approval of Watson (who is currently en route from Glastonbury).

De Piero wrote in her resignation letter to Corbyn: "I have always enjoyed a warm personal relationship with you and I want to thank you for the opportunity to serve in your shadow cabinet. I accepted that invitation because I thought it was right to support you in your attempt to achieve the Labour victory the country so badly needs.

"I do not believe you can deliver that victory at a general election, which may take place in a matter of months. I have been contacted by many of my members this weekend and It is clear that a good number of them share that view and have lost faith in your leadership.”

10:58 Shadow defence secretary Emily Thornberry has backed Corbyn, telling Michael Crick that "of course" she has confidence in his leadership. She is the fourth shadow cabinet minister to back Corbyn (along with McDonnell, Abbott and Trickett).

10:52 Our Staggers editor Julia Rampen has written up Benn and McDonnell's TV appearances.

"Two different visions for the Labour Party's future clashed today on primetime TV. Hours after being sacked from the shadow cabinet, Corbyn critic Hilary Benn was on the Andrew Marr Show ruling himself out of a leadership challenge. However, he issued a not-so-coded cry for revolt as he urged others to "do the right thing" for the party. Moments later, shadowhancellor John McDonnell sought to quell rumours of a coup by telling Andrew Neil Jeremy was "not going anywhere". He reminded any shadow ministers watching of the grassroots support Labour has enjoyed under Corbyn and the public petition urging them to back their leader."

10:46 Asked to comment, Tony Blair told the BBC: "I think this is for the PLP. I don't think it's right for me or helpful to intervene."

10:38 On the leadership, it's worth noting that while Corbyn would need 50 MP/MEP nominations to make the ballot (were he not on automatically), an alternative left-wing candidate would only need 37 (15 per cent of the total).

10:27 Jon Trickett, one of just three shadow cabinet Corbynites, has tweeted: "200,000 people already signed the petition in solidarity with the leadership. I stand with our party membership."

10:14 McDonnell has told the BBC's Andrew Neil: "I will never stand for the leadership of the Labour Party". He confirmed that this would remain the case if Corbyn resigned. McDonnell, who stood unsuccessfully for the Labour leadership in 2007 and 2010 (failing to make the ballot), added that if Corbyn was forced to fitght another election he would "chair his campaign".

10:12 Tom Watson is returning from Glastonbury to London. He's been spotted at Castle Cary train station.

10:07 A spokesman for John McDonnell has told me that it's "not true" that Seema Malhotra, the shadow chief secretary to the Treasury, is canvassing MPs on his behalf. Labour figures have long believed that the shadow chancellor and former Labour leadership contender has ambitions to succeed Corbyn.

09:51 Appearing on the Marr Show, Hilary Benn has just announced that he will not stand for the Labour leadership. "I am not going to be a candidate for leader of the Labour Party." Tom Watson, Angela Eagle and Dan Jarvis are those most commonly cited by Corbyn's opponents as alternative leaders.

09:46 Should Corbyn refuse to resign, Labour MPs are considering electing an independent PLP leader, an option first floated by Joe Haines, Harold Wilson's former press secretary, in the New Statesman. He argued that as the representatives of the party's 9.35 million voters, their mandate trumped Corbyn's.

09:38 Here's Stephen on the issue of whether Corbyn could form a shadow cabinet after the revolt. "A lot of chatter about whether Corbyn could replace 10 of his shadow cabinet. He couldn't, but a real question of whether he'd need to. Could get by with a frontbench of 18 to 20. There's no particular need to man-mark the government - Corbyn has already created a series of jobs without shadows, like Gloria De Piero's shadow minister for young people and voter registration. That might, in many ways, be more stable."

09:32 Despite the revolt, there is no sign of Corbyn backing down. A spokesman said: "There will be no resignation from the elected leader of the party with a strong mandate".

09:11 Shadow Scotland secretary Ian Murray is one of those expected to resign. As Labour's only Scottish MP, the post would have to be filled by an MP south of the border or a peer.

09:01 Diane Abbott, Corbyn's long-standing ally, has been promised the post of shadow foreign secretary, a Labour source has told me.

The shadow international developmnent secretary is one of just three Corbyn supporters in the shadow cabinet (along with John McDonnell and Jon Trickett). Though 36 MPs nominated him for the leadership, only 14 current members went on to vote for him. It is this that explains why Corbyn is fighting the rebellion. He never had his MPs' support to begin with and is confident he retains the support of party activists (as all polls have suggested).

But the weakness of his standing among the PLP means some hope he could yet be kept off the ballot in any new contest. Under Labour's rules, 50 MP/MEP nominations (20 per cent of the total) are required.

08:52 Welsh First Minister Carwyn Jones has joined the revolt, telling BBC Radio Wales that events make it "very difficult" for Corbyn to lead Labour into the next election.

08:50 Tom Watson, a pivotal figure who Labour MPs have long believed could determine the success of any coup attempt is currently at Glastonbury.

08:26 Following Hilary Benn's 1am sacking, Jeremy Corbyn will face shadow cabinet resignations this morning. Shadow health secretary Heidi Alexander has become the first to depart.

The New Statesman will cover all the latest developments here. John McDonnell, Corbyn's closest ally, is appearing on The Andrew Marr Show at 9:45.

"This is the trigger. Jeremy's called our bluff," a shadow cabinet minister told me. He added that he expected to joined by a "significant number" of colleagues. The BBC's Laura Kuenssberg has reported that half of the 30 will resign this morning.

Corbyn is set to face a vote of no confidence from Labour MPs on Tuesday followed by a leadership challenge. But his allies say he will not resign and are confident that he will make the ballot either automatically (as legal advice has suggested) or by winning the requisite 50 MP/MEP nominations.