Live: Boris Johnson finally resigns in wake of fresh exodus of ministers

Amid a series of fresh resignations from his Government, Boris Johnson has finally agreed to resign as Tory leader.

With the latest ministers to quit his Cabinet including newly-appointed Education Secretary Michelle Donelan and Northern Ireland Secretary Brandon Lewis, a Number 10 source said the Prime Minister has agreed to stand down.

Here are the latest developments in the downfall of Mr Johnson:

10.25am

A Cabinet minister who has been a vocal ally of Boris Johnson in recent months has suggested he does not want him to continue until October.

Business Secretary Kwasi Kwarteng said on Twitter: “What a depressing state of affairs. So much needless damage caused.

“We now need a new leader as soon as practicable. Someone who can rebuild trust, heal the country, and set out a new, sensible and consistent economic approach to help families.”

10.20am

Boris Johnson’s premiership has been one peppered with gaffes, miss-steps and forced apologies:

10.15am

Boris Johnson is already facing calls to immediately step down as Prime Minister, including from some within the Conservative Party.

Tory MP Nick Gibb said after losing so many ministers, Mr Johnson “has lost the trust and authority required to continue”.

He added: “We need an acting PM who is not a candidate for leader to stabilise the Government while a new leader is elected.”

SDLP leader Colum Eastwood said Mr Johnson needs to leave Government with immediate effect.

The Foyle MP said: “Boris Johnson has debased the office he holds, he has fundamentally and indelibly damaged public confidence in politics and public life, and his death grip on power has prolonged a period of government that will be characterised by law-breaking, scandal and sleaze.

“He should now leave Government immediately.”

10.05am

With Downing Street and the entire Government engulfed in chaos and uncertainty, there was a stark warning that the UK could soon plunge into recession.

The Office for Budget Responsibility (OBR) said gas prices temporarily spiking at £7 a therm and oil prices peaking at 147 US dollars a barrel would see inflation reach 11% and push the economy into a recession, as defined by two consecutive quarters of falling output.

In its fiscal risks and sustainability report, the OBR said this scenario would see gross domestic product fall 4% below its baseline scenario, before quickly recovering as energy prices fall.

Government measures to tackle the crisis would add £30 billion to public debt in 2023-24 and £63 billion by 2026-27, it estimated.

10am

Buckingham Palace declined to comment on whether the Queen has had any communication with Boris Johnson on Thursday morning.

The Queen is at Windsor Castle and the Court Circular recorded she held her weekly audience by telephone with Mr Johnson on Wednesday evening.

09.55am

Scottish First Minister Nicola Sturgeon said there will be “widespread relief” that Boris Johnson is resigning.

But she questioned whether it is “sustainable” for him to remain Prime Minister until the autumn.

She tweeted: “There will be a widespread sense of relief that the chaos of the last few days (indeed months) will come to an end, though notion of Boris Johnson staying on as PM until autumn seems far from ideal, and surely not sustainable?

“Boris Johnson was always manifestly unfit to be PM and the Tories should never have elected him leader or sustained him in office for as long as they have.

“But the problems run much deeper than one individual.

“The Westminster system is broken.”

09.50am

A number of ministers have vowed to stay in post, with most citing the need to ensure the continued smooth running of their departments.

Defence Secretary Ben Wallace and security minister James Heappey both said they would continue to serve no matter who the PM is, saying they have “an obligation to keep this country safe”.

Mr Wallace said “the public would not forgive us if we left these offices of state empty”.

Meanwhile, Work and Pensions Secretary Therese Coffey said she will remain in office to ensure the “wheels of government keep turning… especially at DWP which helps the most vulnerable in society”.

09.42am

Sir Keir Starmer said it is “good news” that Boris Johnson is resigning, but the Labour leader added: “We don’t need to change the Tory at the top – we need a proper change of government.”

He said: “The Tory Party has inflicted chaos upon the country during the worst cost-of-living crisis in decades. And they cannot now pretend they are the ones to sort it out.

“They have been in power for 12 years. The damage they have done is profound.

“Twelve years of economic stagnation. Twelve years of declining public services. Twelve years of empty promises.

“Enough is enough. We don’t need to change the Tory at the top – we need a proper change of government.

“We need a fresh start for Britain.”

09.40am

Environment minister Rebecca Pow has become the latest minister to resign from the Government.

She tweeted: “Earlier this morning I tendered my resignation as Environment Minister. Values, integrity and the morals by which I live are at stake, and the needs of the country must always come first.”

And resigning as deputy chairman of the Conservative Party, Luke Hall said he felt “there is no choice”.

In a letter to the Prime Minister written before it was announced Mr Johnson had agreed to step down, Mr Hall said: “I have taken the view that there must be parliamentary oversight of the inevitable leadership contest.

“However there are others who can provide that. The current situation is clearly untenable.”

09.35am

09.30am

The pound was trading higher on the news of Mr Johnson’s resignation – up 0.6% at 1.198 US dollars and 0.4% stronger at 1.174 euros.

09.25am

A Number 10 spokesman said the PM will make a statement to the country today, with reports saying that will be before lunchtime.

09.14am

Boris Johnson has spoken to Tory 1922 Committee chairman Sir Graham Brady and agreed to stand down, with a new Tory leader set to be in place by the party conference in October, a No 10 source said.