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Brexit live: Farage 'disgusted' at May's refusal to promise EU nationals they can stay in UK Brexit live: Farage 'disgusted' at May's refusal to promise EU nationals they can stay in UK
(35 minutes later)
11.52am BST
11:52
Here is Sky News’ latest tally on how many declared MP supporters each candidate in the Tory leadership contest has.
Latest on MPs from @SkyNews in Tory leadership contest MAY:122CRABB:25GOVE:27FOX:8LEADSOM:40
11.48am BST
11:48
Labour is going to hold an emergency debate in the Commons tomorrow on the rights of EU nationals living in the UK, Andy Burnham, the shadow home secretary, says.
Shadow Cabinet has agreed to hold an emergency debate tomorrow on EU nationals living in UK. Please ask your MP to support Labour motion. RT
11.44am BST
11:44
Jeremy Corbyn is due to announce the full details of his new shadow cabinet, the BBC’s Vicki Young reports.
Final Shadow Cab line up will be announced later. Asked about junior posts Corbyn spokesman says "Rome wasn't built in a day." #labour
11.41am BST
11:41
In the House of Lords peers have just started a debate on the EU referendum. More than 100 peers are due to speak and you can see who will be speaking, and when, on the speakers’ list on the Lords whips office website.
I will not be covering the debate in detail, but I will try to flag up any highlights.
You can watch the debate here.
11.36am BST
11:36
Lib Dems says Bank of England report shows leave campaigners have been lying about impact of Brexit
The Liberal Democrats are saying that today’s Bank of England financial stability report (see 11.28am) shows that the leaders of the leave campaign have been lying to the public about the economic consequences of Brexit. This is from Susan Kramer, the Lib Dems’ Treasury spokesperson.
The leaders of the Brexit campaign, including Andrea Leadsom, have been quick to claim that any hit to our economy was a minor blip and already in the past. The Bank of England’s report shows that those who lied during the campaign are continuing to treat the public like fools even now. They need to stop pretending all is well and start acting in the interests of the country.
The FPC’s report confirmed that our economy is now in serious danger as business confidence evaporates. Every single job lost, every deal cancelled and every home foreclosed will be on the hands of those who promised the earth but offer no clear picture for our future relationship with Europe.
Cutting the capital buffers is a sensible move, but we need central government to act as aggressively as the Bank of England. That means opening up a line of credit via the British Business Bank to support those high innovation businesses who will now struggle to get bank lending, overdraft facilities and financing.
11.28am BST
11:28
Bank of England says 'some market and economic volatility' expected after Brexit vote
The Bank of England has published its financial stability report today. You can read it here.
And here is an extract from the executive summary.
There will be a period of uncertainty and adjustment following the result of the referendum. It will take time for the United Kingdom to establish new relationships with the European Union and the rest of the world. Some market and economic volatility is to be expected as this process unfolds.
The degree of uncertainty and nature of adjustment is evident in financial market prices, which have moved sharply following the referendum. Between 23 June and 1 July, the sterling exchange rate index fell by 9% and short-term volatility of sterling against the dollar rose to its highest level in the post-Bretton Woods era. Equity prices of UK banks have fallen on average by 20%, with UK-focused banks experiencing the largest falls. Equity prices of domestically focused companies have fallen by 10%. The ten-year UK government bond yield fell by 52 basis points. These moves reflect an increase in risk premia on UK assets, a perceived weaker growth outlook, and anticipation of some future deterioration in the United Kingdom’s terms of trade and supply capacity.
11.21am BST
11:21
Sterling falls to new lows against dollar and euro
The pound is continuing to fall in value in the light of the Brexit vote, the Press Association reports.
Sterling plunged to new lows against both the dollar and the euro on Tuesday as the UK’s decision to leave the European Union continues to batter investor confidence in the country.
The pound plunged to 1.3117 dollars, down 12% since the Brexit vote and hitting a 31-year low. Sterling also fell to its weakest level against the euro since 2013 at 1.1787 euros.
The currency was dented after data showed Britain’s dominant services sector slipped back last month as Brexit uncertainty intensified.
The closely-watched Markit/CIPS services purchasing managers’ index (PMI) recorded a worse-than-expected 52.3 in June, down from 53.5 in May and below economist expectations of 52.8.
Measures by the Bank of England to help prop up the British economy, which include relaxing funding rules for banks to boost lending by up to £150bn, failed to buoy the pound.
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11:1511:15
Bank of England relaxes bank lending rules to help limit risk of Brexit damaging the economyBank of England relaxes bank lending rules to help limit risk of Brexit damaging the economy
Mark Carney, the governor of the Bank of England, has just announced that it is easing its bank lending rules to help limit the risk of Brexit damaging the economy.Mark Carney, the governor of the Bank of England, has just announced that it is easing its bank lending rules to help limit the risk of Brexit damaging the economy.
My colleague Graeme Wearden is covering Carney’s press conference in detail on his business live blog.My colleague Graeme Wearden is covering Carney’s press conference in detail on his business live blog.
Related: Mark Carney eases bank lending rules to fight Brexit crisis as pound hits 31-year low - live updatesRelated: Mark Carney eases bank lending rules to fight Brexit crisis as pound hits 31-year low - live updates
And here’s an extract.And here’s an extract.
Mark Carney confirms that the Bank of England has decided to cut the ‘counter-cyclical capital buffer’ on UK banks.Mark Carney confirms that the Bank of England has decided to cut the ‘counter-cyclical capital buffer’ on UK banks.
This means banks need to keep less capital on their books, and can pump up to £150bn more into the economy.This means banks need to keep less capital on their books, and can pump up to £150bn more into the economy.
This will “immediately” give banks greater flexibility to lend to UK businesses and households, declares the BoE governor.This will “immediately” give banks greater flexibility to lend to UK businesses and households, declares the BoE governor.
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The Guardian’s account of how the five Tory leadership candidates performed at the private hustings for MPs last night is here.The Guardian’s account of how the five Tory leadership candidates performed at the private hustings for MPs last night is here.
Others have good accounts too.Others have good accounts too.
Emily Ashton at BuzzFeed says Andrea Leadsom performed badly.Emily Ashton at BuzzFeed says Andrea Leadsom performed badly.
One cabinet minister said she was asked three times about her backing from Ukip and Leave.EU. “When you’re asked to say you’re not Ukip at a hustings to be leader of the Conservative party, you’re in trouble,” he said. “It was a car crash.”One cabinet minister said she was asked three times about her backing from Ukip and Leave.EU. “When you’re asked to say you’re not Ukip at a hustings to be leader of the Conservative party, you’re in trouble,” he said. “It was a car crash.”
Another MP said her pitch was a “fucking shambles”, adding: “She babbled on about the importance of the frontal cortex for emotional development, said she’d trigger article 50 immediately – and then that she wouldn’t. She was good for the first three minutes though.”Another MP said her pitch was a “fucking shambles”, adding: “She babbled on about the importance of the frontal cortex for emotional development, said she’d trigger article 50 immediately – and then that she wouldn’t. She was good for the first three minutes though.”
Owen Bennett, at the Huffington Post, says Leadsom’s performance was described as a “car crash”.Owen Bennett, at the Huffington Post, says Leadsom’s performance was described as a “car crash”.
James Forsyth, at the Spectator, says Liam Fox seemed to be auditioning for the job of foreign secretary, not prime minister.James Forsyth, at the Spectator, says Liam Fox seemed to be auditioning for the job of foreign secretary, not prime minister.
Unlike Gove, he devoted most of his 15 minutes to giving a speech. He emphasised his experience and his ability to take decisive decisions. He said that he would ringfence the mental health budget and increase defence spending. He talked about the dangers of cyber-terrorism and won smiles when he warned the 2010 and 2015 intakes not to believe the job offers that candidates make to them.Unlike Gove, he devoted most of his 15 minutes to giving a speech. He emphasised his experience and his ability to take decisive decisions. He said that he would ringfence the mental health budget and increase defence spending. He talked about the dangers of cyber-terrorism and won smiles when he warned the 2010 and 2015 intakes not to believe the job offers that candidates make to them.
The view of Tory MPs afterwards was that Fox was, most likely, auditioning to be foreign secretary rather than prime minister. Hence, the global focus of the speech.The view of Tory MPs afterwards was that Fox was, most likely, auditioning to be foreign secretary rather than prime minister. Hence, the global focus of the speech.
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Priti Patel, the employment minister and a lead figure in the Vote Leave campaign, has written an article for the Telegraph setting out what qualities she is looking for in the next Conservative leader. She does not say who she is backing, but she says the party needs someone who is “tried and tested, capable of making tough decisions and can lead a team negotiating with EU institutions” but who can also “bring together, both the entire Conservative party and our country”.Priti Patel, the employment minister and a lead figure in the Vote Leave campaign, has written an article for the Telegraph setting out what qualities she is looking for in the next Conservative leader. She does not say who she is backing, but she says the party needs someone who is “tried and tested, capable of making tough decisions and can lead a team negotiating with EU institutions” but who can also “bring together, both the entire Conservative party and our country”.
Although Patel does not say which of the five candidates best meets these criteria, a source in the Theresa May camp has been emailing a link to the interview to journalists – so perhaps we can draw our own conclusions.Although Patel does not say which of the five candidates best meets these criteria, a source in the Theresa May camp has been emailing a link to the interview to journalists – so perhaps we can draw our own conclusions.
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The crisis in Labour is generating increased interest in the possibility of a split, and the formation of a new party. In the Times today Rachel Sylvester says a growing number of MPs and peers are interested in creating a new party of the centre left. (See 6.49am.) And in the Financial Times Janan Ganesh says these Labour splitters should not be deterred by the memory of what happened to the Social Democratic party in the 1980s.The crisis in Labour is generating increased interest in the possibility of a split, and the formation of a new party. In the Times today Rachel Sylvester says a growing number of MPs and peers are interested in creating a new party of the centre left. (See 6.49am.) And in the Financial Times Janan Ganesh says these Labour splitters should not be deterred by the memory of what happened to the Social Democratic party in the 1980s.
The trauma of Limehouse has paralysed Labour moderates. But if they are going to be cowed by history, they should get that history right. In the end, the SDP won, and won big. The past four prime ministers – John Major, Tony Blair, Gordon Brown and David Cameron – have tried to blend a free economy, a substantial state, cultural looseness and EU membership. Jenkins sensed where the country was going, just too early. Last month’s eruption has broken his consensus but it still commands half of Britons. A new party must speak for them.The trauma of Limehouse has paralysed Labour moderates. But if they are going to be cowed by history, they should get that history right. In the end, the SDP won, and won big. The past four prime ministers – John Major, Tony Blair, Gordon Brown and David Cameron – have tried to blend a free economy, a substantial state, cultural looseness and EU membership. Jenkins sensed where the country was going, just too early. Last month’s eruption has broken his consensus but it still commands half of Britons. A new party must speak for them.
Interestingly two Labour MPs, Clive Lewis and Jonathan Reynolds, have written a joint article for LabourList saying the party should embrace proportional representation because of the increasingly fragmented nature of the electorate. They argue:Interestingly two Labour MPs, Clive Lewis and Jonathan Reynolds, have written a joint article for LabourList saying the party should embrace proportional representation because of the increasingly fragmented nature of the electorate. They argue:
The Brexit referendum showed what happens when the electorate are given a vote that counts – they take it and use it – packing so much frustration into a decision that was nominally about Europe but clearly about so much more, not least the effects of globalisation on their lives. The contrast could not have been greater with general elections in the UK. Because of the First Past the Post voting system only a few swing voters in a few swing seats are listened to and many voices are never heard.The Brexit referendum showed what happens when the electorate are given a vote that counts – they take it and use it – packing so much frustration into a decision that was nominally about Europe but clearly about so much more, not least the effects of globalisation on their lives. The contrast could not have been greater with general elections in the UK. Because of the First Past the Post voting system only a few swing voters in a few swing seats are listened to and many voices are never heard.
This combined with the increasingly diverse nature of the UK’s political landscape means that a shift to a proportional voting system is now an urgent imperative. The era of just two big parties representing the vast bulk of the country is over and we now see the pent up consequences of pretending that is still the case. We urge the Labour party to lead the country towards a new politics of the 21st century by embracing proportional representation (PR).This combined with the increasingly diverse nature of the UK’s political landscape means that a shift to a proportional voting system is now an urgent imperative. The era of just two big parties representing the vast bulk of the country is over and we now see the pent up consequences of pretending that is still the case. We urge the Labour party to lead the country towards a new politics of the 21st century by embracing proportional representation (PR).
Lewis is a Corbyn supporter and Reynolds is on the right of the party. The clear implication of their article is that Labour should split, although it does not say whether the Corbyn/Momentum/membership faction should be the one that leaves and sets up a new organisation from scratch or the “moderate”/rightwing/PLP one. But the two MPs do envisage the two successor Labour parties working together. They go on:Lewis is a Corbyn supporter and Reynolds is on the right of the party. The clear implication of their article is that Labour should split, although it does not say whether the Corbyn/Momentum/membership faction should be the one that leaves and sets up a new organisation from scratch or the “moderate”/rightwing/PLP one. But the two MPs do envisage the two successor Labour parties working together. They go on:
We welcome the formation of a progressive alliance of parties that understand without PR a more equal, democratic and sustainable society is less likely.We welcome the formation of a progressive alliance of parties that understand without PR a more equal, democratic and sustainable society is less likely.
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Richard AdamsRichard Adams
The vice chancellors of Britain’s leading universities say they are “concerned by reports of increasing xenophobic incidents” and have issued a pledge to protect staff and students from attacks in the wake of the EU referendum result.The vice chancellors of Britain’s leading universities say they are “concerned by reports of increasing xenophobic incidents” and have issued a pledge to protect staff and students from attacks in the wake of the EU referendum result.
The Russell Group of leading UK research universities is in the frontline of Brexit fallout, vulnerable to uncertainty over research funding, staff and student recruitment from Europe.The Russell Group of leading UK research universities is in the frontline of Brexit fallout, vulnerable to uncertainty over research funding, staff and student recruitment from Europe.
David Greenaway, vice-chancellor of the University of Nottingham and the group’s chair, and Wendy Piatt, the group’s director-general, have announced that they are already in talks with the government “to ensure the best possible outcome from upcoming negotiations”.Here’s an extract from the full Russell Group statement.David Greenaway, vice-chancellor of the University of Nottingham and the group’s chair, and Wendy Piatt, the group’s director-general, have announced that they are already in talks with the government “to ensure the best possible outcome from upcoming negotiations”.Here’s an extract from the full Russell Group statement.
Leaving the EU will have a profound effect on our universities, who have long thrived on global collaboration and international interaction – be it through European staff and students coming to our universities, or when our best researchers work with colleagues across Europe to tackle big social and scientific challenges.Leaving the EU will have a profound effect on our universities, who have long thrived on global collaboration and international interaction – be it through European staff and students coming to our universities, or when our best researchers work with colleagues across Europe to tackle big social and scientific challenges.
Our universities have, therefore, always warmly welcomed people from different cultures, ethnicities and beliefs. Embracing this very diversity is vital to our success, fundamental to our values and enriches life on campus. So we are especially concerned by reports of increasing xenophobic incidents and how this could impact on our communities. We simply will not tolerate abuse of this sort and any student or staff member who experiences racism or xenophobia on or off our campuses can be assured this will be taken extremely seriously. Now more than ever we should ensure our campuses are places where diversity is welcomed, cherished and respected.Our universities have, therefore, always warmly welcomed people from different cultures, ethnicities and beliefs. Embracing this very diversity is vital to our success, fundamental to our values and enriches life on campus. So we are especially concerned by reports of increasing xenophobic incidents and how this could impact on our communities. We simply will not tolerate abuse of this sort and any student or staff member who experiences racism or xenophobia on or off our campuses can be assured this will be taken extremely seriously. Now more than ever we should ensure our campuses are places where diversity is welcomed, cherished and respected.
10.13am BST
10:13
Libby Brooks
Nicola Sturgeon, the Scottish first minister, will host a group of diplomats representing EU countries at Bute House, to discuss how the Scottish government can provide further reassurance to all EU citizens living in Scotland.
Ahead of the meeting, Sturgeon said:
I have made it very clear that citizens of EU countries who have decided to make Scotland their home should receive an absolute guarantee from the UK government that their status here is safe and secure.
I have already written to the prime minister and the potential candidates to succeed him, calling for that assurance to be made without delay - and that is just one of the issues I will be discussing with consuls and diplomats at today’s summit.
The first minister is also meeting representatives of the CBI, the Institute of Directors and other Scottish business groups, saying that the business community’s response to Brexit will be “crucial in protecting Scotland’s interests.”
10.11am BST
10:11
Tom Watson, Labour’s deputy leader, is talking to Labour’s main union backers today to try to find a solution to the Jeremy Corbyn crisis but he is not chairing a single meeting. He is due to meet Len McCluskey, the Unite general secretary, along with John Cryer, chair of the parliamentary Labour party, this morning. Later in the day he is expected to talk separately to Dave Prentis, the Unison general secretary, Tom Roache, the GMB general secretary, and Dave Ward, the CWU general secretary. Coordinating their diaries has apparently been a bit of a problem.
9.54am BST
09:54
There are a lot of Tory MPs on Twitter this morning expressing support for Theresa May – some of them using identical language.
Today I'll be voting for @TheresaMay2016 for Prime Minister: she has the leadership to unite the Party & country https://t.co/eJN7P5lxtp
I’ll be voting for @TheresaMay2016 she has the leadership to unite the Party & our country https://t.co/4ypE4rOv0o
I'm voting for @TheresaMay2016 - tried and tested & knows how to make tough decisions #TM4PM
Strong, determined and straight talking @TheresaMay2016 is the outstanding candidate to be Prime Minister. I'll be voting for her today.
After listening to the candidates last night, I'm backing experience, stability, strength & leadership for uncertain times @TheresaMay2016
Why I'm backing @TheresaMay2016: for a Britain that works for everyone & her formidable track record in govt: https://t.co/SDyOFtzPxb #TM4PM
Here is why I'm backing @TheresaMay2016 for Prime Minister: She has strong record of delivery and is a proven leader https://t.co/StrkUvTdFj
I am backing @TheresaMay2016 for Prime Minister. Strong & reliable leadership for challenging years ahead. Also to win the 2020 Election!
I voted Leave and it's now time for strong leadership to unite our great nation - I'm backing @TheresaMay2016 #TM4PM pic.twitter.com/DJV4Cb1T1Z
It is harder to find MPs on Twitter backing other candidates this morning, but David Mowat has said he is backing Andrea Leadsom.
Today, I'll be voting for my friend and colleague @andrealeadsom in the leadership ballot. I'm sure she would make a superb PM.
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09:45
Nicky Morgan, the education secretary who is backing Michael Gove, told the BBC this morning that she did not think Andrea Leadsom was experienced enough to be leader. She said:
[Leadsom] has not been a cabinet minister. She has not been a minister for that long. And there is definitely a mood in the party for making sure that two cabinet heavyweights we have got, who come from different traditions, different sides of the EU referendum campaign, Theresa May and Michael Gove - it would be right to put them to the party in the country.
9.33am BST
09:33
This is a useful reminder that the first round of voting in a Conservative party leadership election is not always a helpful guide to the final result.
Ahead in the 1st rd of Conservative leadership contests:1990: Margaret Thatcher1997: Ken Clarke2001: Michael Portillo2005: David Davis
9.29am BST
09:29
Tory members back Theresa May's stance on EU nationals, poll suggests
Here are more figures from the YouGov poll of Conservative members in today’s Times (paywall). It suggests that Theresa May would comfortably beat Andrea Leadsom in the final ballot.
It also suggests Conservative members back Theresa May’s position on EU nationals remaining in the UK (which is to refuse to promise them now that they can stay, because she wants to secure reciprocal rights for Britons living in the EU as part of the withdrawal negotiations). This is interesting because many Tory MPs, and all the other four leadership candidates, want to assure EU nationals now that they can remain.
More than 7 out of 10 Tory members back Theresa May tying future of EU migrants in UK to future of British EU expats pic.twitter.com/5WkKYvVXjq
Updated
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09:00
Farage says he is disgusted Theresa May is refusing to promise EU nationals they can stay in UK
Andrew Sparrow
Good morning. I’m Andrew Sparrow, taking over from Claire.
Nigel Farage, the outgoing Ukip leader, has been on LBC this morning. He has joined the large chorus of Brexit politicians (and remain ones too) criticising Theresa May for refusing to promise EU nationals living in the UK that they will definitely be allowed to stay. These are from LBC’s Theo Usherwood.
Nigel Farage on LBC now: I might watch a bit of cricket, catch the odd fish, go to the pub.... I wouldn't mind a bit of normality.
Farage: If I can help behind the scenes with the Brexit negotiations then I would be happy to do so.
Farage: I am disgusted at the way May has been speaking. The EU nationals living in the UK came here legally and they have protected rights.
8.42am BST
08:42
Anushka Asthana
It was mainly Conservative MPs who were drinking in the House of Commons bars last night as many discussed how the leadership candidates had performed in the hustings.
Some joked that Andrea Leadsom had lost them when she began to talk about “frontal lobes” and her “3 B’s – Brussels, banks and babies”. The reference was to the attachment theory between parents and newborns and the impact on brain development, something she is passionate about.
Many said Michael Gove and Liam Fox performed best, but said Theresa May got the best reception and described Stephen Crabb as solid.
Around 25 MPs went on to a later session in which the candidates addressed the party’s 2020 group, a set of MPs thinking about winning the next election, in half-hour sessions.
But others went to a special karaoke session in which I’m told all the leadership candidates, apart from Leadsom, turned up for a singalong that stretched into the night.
Sources suggest Crabb came out with a belter: Don’t Stop Me Now!
The karaoke was organised by the deputy leader of the house, Therese Coffey, and dozens of MPs came, singing a variety of songs including Mr Brightside, Mack the Knife and Summer Nights.
8.32am BST
08:32
Crabb: 'being gay is not a sin'
Crabb voted against same-sex marriage and has come in for criticism – particularly since he launched his leadership bid – for his views.
He told the BBC his objection had been on the “narrow issue of protection of religious freedom”:
I’m very happy with the outcome of the vote … I totally, totally support equal marriage in law. I don’t want anybody in society feeling second best. I don’t believe that being gay is a sin.
Crabb also said that quotes circulating on social media in which he allegedly backed “gay conversion therapy” were a “complete falsehood”, adding that he does not believe that being gay is something that can be “cured”:
It’s certainly not part of my Christian outlook.
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08:29
Asked about his proposal for a £100bn Growing Britain fund – borrowing to invest in infrastructure projects – Crabb mentioned (a few times) the need for “bold choices”:
We’re at a major turning point … if we’re going to turn this [Brexit] to our advantage, we need to make some different economic choices.
The plan sounds similar to that outlined in Labour’s manifesto in the 2015 election, presenter Mishal Husain tells him. Does he want to pay tribute to Ed Balls?
Astonishingly, he does not.
Crabb also insists he’s not abandoning government policy:
It will always be a hallmark of a Conservative government to put a really strong emphasis on fiscal discipline and controlling spending.
[But] Britain has to forge a new future in the world.
Updated
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