27/06/2016 BBC News

Good evening from Westminster, where it's been another day full

Lots more of allotments following the EU referendum result last week.

A lot happening at Westminster today. Let's get the latest from Ben

Brown. It's been another day packed full of drama and after-shocks from

that political earthquake last week. The Prime Minister, David Cameron,

has been addressing MPs for the first time

since the referendum. Mr Cameron said negotiating

Britain's exit from the EU would be the most important and complex task

the civil service had Let's get this report from Carol

Walker. The Prime Minister set out to explain the decision which had

forced him from office, triggered unprecedented political turmoil and

caused instability in the markets. Statement, the Prime Minister. He

said it was not the result he wanted but the strength of the British

economy and the country was well placed to face the challenges ahead.

I don't take a quad I said about the risks, it will be the freckled, we

have already seen there will have to be adjustments in our country,

complex content shoes no issues and challenging negotiation with Europe,

but I am clear that the decision must be accepted and the process of

employment ad the best possible way must now begin. He said it was for

his successor to decide when to begin the formal process of the

parting from the EU under Article 50 but a new unit was beginning work.

There were words of reassurance that no hiding the motion. We should hold

fast to a vision of Britain that wants to be respected abroad,

tolerant at home, engaged with the world and working with our partners

to advance the security and prosperity of our generation for

generations to come. I have fought for these things every day of my

political life and will continue to do so. Berger and the Prime Minister

had -- the Chancellor had sought to calm worries. There was pressure on

those leading the Brexit campaign to clarify their plans and it was in

the double dot Boris Johnson was absent from Parliament for the

statement. The markets are stable, the pound is statement and that is

good news. Jeremy Corbyn said the referendum campaign had been

divisive and negative that also turned on his own side in the crisis

engulfing his leadership. Our country is divided and the country

will fight neither the benches in front of me nor those behind for

indulging in internal faction manoeuvring at this time. We have...

Mr Speaker, we have... We have serious matters to discuss in this

house and in the country. The SNP's leader at Westminster said Scotland

had voted to Remain in the EU and would not be part of a diminished

Little Britain. We have no intention of seeing Scotland taken out of

Europe. That would be totally, totally democratically unacceptable.

We are a European country and we will stay a European country and if

that means we have to have a end of tendons referendum to protect

Scotland's says, so be it. Many MPs expressed their regret is the Prime

Minister 's departure but he made it clear that decision will not be

reversed. The country has made a clear decision to go in their

particular direction and I believe it needs fresh leadership a fresh

pair of eyes committed to that path and getting it right for Britain and

I believe that requires change and I am not changing my mind.

A lot of the talk at Westminster, as you've heard, centred around the

road map towards Britain extra trading itself from the EU and some

Brexit supporters talked about having informal talks with EU before

the triggering of Article 50 formerly the defies the EU that the

UK is intent on leaving, but we heard this evening from Angela

Merkel, who has told a news conference in Berlin there can be no

informal talks before the UK formerly notifies other members of

its intention to leave. TRANSLATION: We agreed Article 50 of the European

Union treaties is a statement, the member state wanting to leave the

union has to apply to the European Council and before this application,

no further steps can be taken. Only then the European Council can issue

guidelines and along those guidelines the negotiations can be

conducted, which means there are no informal talks about the exit of

Great Britain before such an application for exiting the European

Union has been submitted to the European Council. That is judged

German Chancellor this evening. There has been a lot of turbulence

on the market today, in the Tory party and the Labour Party. On that

Tory party, the timetable has been set for the new leader to be elected

and so nominations for the new leader opening on Wednesday,

according to the committee of Tory backbenchers, they close on Thursday

it at midday and it is expected the new leader will be in place by

September the 2nd. The Labour Party is in turmoil with the prospect of a

general election causing many MPs to revolt against Jeremy Corbyn in the

belief a new leader would be more likely to help them win votes.

Around two dozen Labour MPs have stepped down and today there will be

an anonymous leadership ballot tomorrow. Here is Ian Watson.

Labour's fragile unity is the next victim of the Brexit vote

with critics saying the party leadership didn't campaign strongly

So, when a political leader loses a dozen

or so MPs from his top team, including his Shadow Foreign

Secretary, Shadow Health Secretary and Shadow Justice Secretary,

that's usually a sign his own resignation won't be far behind.

But not Jeremy Corbyn, he called that the old politics.

He says his mandate comes not from MPs but his rank

He'll neither jump nor is he willing to be pushed out of office.

I think what the party members and public want

is for the Labour Party to unite and deal with the consequences

Labour's Deputy Leader Tom Watson has his own mandate from party

members and is close to the big unions.

He didn't in so many words call for his leader to resign

but asked him to consider the effect of a contest on him

Here in the corridors of power at Westminster and these closed

doors, Labour MPs will meet to discuss a motion of no confidence

The kind of people supporting that can't be simply characterised

at Blairites or Brownites, to the right of the party.

But, even if a majority of MPs want Jeremy Corbyn to go,

under Labour's rules, he can simply tell them

That means a formal leadership challenge is likely to follow.

Today, Jeremy Corbyn appointed a new Shadow Cabinet.

Emily Thornberry becomes the Shadow Foreign Secretary.

There were promotions for two key allies.

Diane Abbott moves to health and Clive Lewis to defence.

No sooner was this announced than two more resignations followed.

In the current scenario, I cannot see how I can

possibly continue to support the circumstances

We need to go and have the leadership election that has

It feels the collision between the people who are seeking

to get rid of Jeremy Corbyn and the people who are trying

to stick in there in Jeremy Corbyn's team,

Pressure further mounted on Jeremy Corbyn when,

in a leaked letter, Alan Johnson suggested the Labour leadership

had been undermining the pro-EU Remain campaign,

and Angela Eagle was emotional about her decisions for resigning.

There is likely to be a quick general election, probably this

year, and I do not think, with the best will in the world

to Jeremy, that we can do well in that election

Most Labour MPs have no truck with Jeremy Corbyn but ultimately,

whether his leadership's destined for the dustbin of history will be

a matter for Labour's members and not for those

Here we have that crucial meeting of the parliamentary party this

evening. Let's go to Vicki Young, who was inside the Palace of

Westminster. Tell us about the importance of this meeting. After

these mass resignations there will be no surprise this meeting will be

highly critical of Jeremy Corbyn. The motion of no-confidence will be

put forward by the Labour MP Margaret Hodge. It is unclear

whether he would go for not, but there is a big rally outside in

Parliament Square, where we are told about 1000 supporters of Jeremy

Corbyn have gathered, partly union members of the momentum campaign

group, which really swept into power a few months ago. This meeting will

go one, then they will have a secret ballot tomorrow of no-confidence,

assuming what has been happening in the last couple of days you would

assume that would be passed, and the big question is whether Jeremy

Corbyn will resign for dig his heels in and fight, and then there will be

a leadership contest because Labour MPs said at least 50 would gather

around one contest but be in no doubt this is a fight for the heart

of the Labour Party. Some Labour MPs today have spoken openly about an

existential crisis for the Labour Party, a possible split of the

party, they are having their minds focused because they fear an early

general election once the Conservatives have their new leader

and many fear there will be dozen more seats last, so that his wife

they are now pushing this and we are in a stand-off situation with Jeremy

Corbyn's people saying he will stay, he has the backing of the party

leader, though Labour MPs say they are getting hundreds of e-mails from

party members are some who voted from Jeremy Corbyn but the result of

this referendum has made them change their mind and they fear an early

general election would meet Labour are white head. We heard support for

Jeremy Corbyn from trade union leaders. The key question is how

popular he still is among party members in the country. Remember

when he came to the forefront there were hundreds of thousands of

members who join, they paid ?3, some have gone on to become full members

of the Labour Party, they have been told they would have to reapply for

that process and pay again, the question is whether they would do

that, but there is a rival petition going around, which is the other

side in this argument, trying to get moderate people from the moderate

wing of the Labour Party to sign up in big enough numbers to counter

right Corbyn supporters, so we will have to see where that ends up. At

the moment there is this impasse with neither side moving, Corbyn's

people saying he would carry on fighting, if he stood down the

question is whether someone else from the left wing of the party

would stand but it is interesting we are likely to have two leadership

contest, one in labour, one in the Conservatives, at the same time. The

Labour Party process could go on for longer so we have the chance of a

new Tory leader in place by September, what if they call a snap

election when Labour is in the middle of a leadership contest?

Labour Party members are very concerned. Thank you, Vicki Young.

You mention that rally outside Westminster. Supporters of Jeremy

Corbyn from the grassroots movement that backs Jeremy Corbyn's

leadership, and Bateman is there. -- Tom Bateman. Welcome to Parliament

Square, where we have a big rally I Momentum,, and as we get that

meeting under way by Labour members across the road, his leadership

campaign are saying look at his vast mandate, the quarter of a million

people who voted for him and some of those people are here. We had the

National Union of Students, the unions have been forthright for

Jeremy Corbyn and their message is that although the front bench team

and many MPs do not support Mr Corbyn, these grassroots members and

activists clearly do. We had chance of Tories out, Corbyn in, that is

the message from them, and I am joined by the national organiser for

Momentum, James Schneider. Give us a sense of what is happening on the

front bench, this is bad news for Jeremy Corbyn. It's bad news for the

party, I think the election will badly on the party talking to

ourselves like this but Jeremy Corbyn has had a remarkable response

in the grassroots, he has a growing movement and that has to be our

strategy for winning elections, to organise to reach out to people who

have left the party and are not voting for it anymore. It counts for

nothing if the cap form a front bench team. He has formed a front

bench team, he will form one. Some people have left, there is a

difficult time in the party, there is able big and difficult situation

which has to be resolved but there will be events like this all around

the country. He has this support. That court complaint that he seventh

week couldn't get the support to get the message out about Labour's

position on the referendum. We heard from him himself that he was 7.5 out

of ten on Europe, that was a failure. Supporters who voted in, a

lot of them were about 7.5 out of ten. It was difficult to get our

message across given the lies and then the phobia in the campaign but

his message was a good one and TD delivered it with clarity and 70% of

Labour voters voted Remain, roughly the same number of live them

members. That is not the crisis it is drummed up by us. A lot of other

Labour figures did not get the Remain vote out in their areas. And

yet we hear from angelic legal, not one of the usual suspects, virtually

in tears as she talked about her resignation saying Mr Corbyn's

leadership was hailing the prospect of a more right-wing Tory Prime

Minister. That is a disaster for Labour. I think what is a disaster

for Labour is having this as election now when we should be

uniting for Brexit negotiations. It is really the responsible in this

national crisis. I am sure it will go on for longer, we are just

getting sums teaches us that meeting of the Parliamentary Labour Party

continues. Thank you, Tom Bateman. Now let's discuss the implications

of the Shadow Cabinet resignations we have seen. I'm joined by Gemma

Doyle, who was a Labour MP for Dumbartonshire and was one of the

Labour candidates who signed that letter to date calling for Jeremy

Corbyn to stand down. Why? We have been through a major test, we have

just had the referendum and he was not up for the job. I think he is

left down the membership badly. We had Labour members around the

country knocking on doors trying to make the case for the EU and we had

a half-hearted leadership in that campaign from Jeremy Corbyn. If you

look at what Alan Johnson said today, the leader of the Labour in

campaign, he felt Jeremy and his office were not, were frustrating

what a work trying to do, perhaps had other motives and Chris Bryant

has told us that Jeremy would not confirm how he voted in that

referendum. It is not sustainable to go on like this. Vicki Young was

saying this is able at all for the heart of the Labour Party, has the

Labour Party come to wake kind of cross roads were it might split into

a sort of hard left and a softer left? I desperately hope not and I

don't think that will happen. There are a number of people who joined

the party just to support Corbyn and they are not interested in

supporting Labour without Corbyn so I gently suggest to them they might

want to look elsewhere. The Labour Party is a broad church but it is

not sustainable to go on like this. We cannot have a leader who

half-heartedly said he would support the Remain campaign and then refused

to turn up to events, wasn't out the way that MPs and members words daily

in the banging on doors, if that is what we will get at a general

election, that is not good enough and I think it has been a

dereliction of duty from Jeremy. But if he doesn't want to go, if there

is another leadership election in the party, he may stand again and if

he has as much support within the party membership as last time, he

will win again easily and what happens next to Labour? To get to

that stage she will have to get support from enough MPs to run again

in an election and what is happening now in parliament in the PLP, we

think by all accounts that members of our element are telling Jeremy

clearly that they did not support him. This is unprecedented, we

cannot have a leader of the Labour Party who doesn't command the

support of his Shadow Cabinet. His supporters are saying this is a

right-wing mutiny that has been orchestrated because he is a

socialist leader. I don't think so. If you look at the MPs who have

resigned from the Shadow Cabinet, they come from different political

opinions. We all want a Labour Party who can win an election, we cannot

do anything for people if we did not win and that is quite people have

taken the difficulties listen to call for him to go. Gemma Doyle,

thank you for being with us. The Foreign Secretary Philip Hammond has

been meeting US Secretary of State John Kerry, who were assured reckons

that the special relationship between the UK and the US would not

change because of the decision to leave the EU. This special

relationship that we often refer to is perhaps even more important in

these days of questioning but I want to make it clear that we believe, we

the US believe it Remain strong and as crucial as ever. We are bound to

get by a lot of different things bound to gather by a lot of history.

Bound together by many shared traditions, shared values, shared

language, mostly. That was John Kerry and Philip Hammond said the UK

would Remain outward looking. Britain's global role remains

undiminished. There is absolutely no question that written will turn its

back on the world work on Europe. Britain is and always will be open

for business, committed to peace and security and a leading supporter of

the international rules -based system. Philip Hammond there, now

let's talk about the impact of the Brexit vote for the economy,

banking, airline shares all fit in treading on anxious markets but that

pounded steady after hitting at one point a 31 year low against the

dollar. The former anchor of England governor were drinking criticised

the tactics of the Remain campaign which she said treated people like

idiots. He's called for calm and said

there was no need to panic. Our economics correspondent

Andy Verity has more details. If the Chancellor was seeking

to reassure the markets, Today, shares in 250 of the largest

British companies dropped by 7% to add to the 7%

they lost on Friday. The last time there was a bigger

drop was in the 1987 Markets will be nervous

for the coming weeks. Every time there's a new political

risk, whether it's in Europe or elections in the US,

markets may react more sensitively The man who governed the Bank

of England in the last crisis joined the chorus to seek to calm markets

down in the new one. Markets move, up and down,

up and down. We don't know where

they'll find their level. The whole aspect of volatility is,

there's a trial and error process going on before the markets discover

what their level is. There's no reason for

any of us to panic. Traders' anxieties were focused

on the banks which had already lost Barclays has lost over

32% of its market value RBS, one of our nationalised banks,

lost over 30% of its value People are very concerned about the

impacts on the economy of Brexit. These banks are highly exposed

to the economy, lending to Also the fact in the case

of Barclays, a big investment banking arm, investment banking

will be very difficult With Lloyds and the Royal Bank

of Scotland, the Government They are not going to get

sold any time soon. On Thursday, the taxpayers' stake

in Lloyds was worth Now it is worth more

like ?3 billion. Selling their stakes was a key plank

of the Chancellor's plan to get You can be fairly sure that

now that national debt As the US stock market opened,

you might have expected the pound to bounce back but instead it sank,

and it is now at $1.32. If recession was what the doctor

ordered, the medicine If reassurance was what the doctor

ordered, the medicine You have been at the city today, how

anxious is it? We are still lacking direction from Westminster and one

of the revealing things from George Osborne and this morning, when he

spoke before markets opened, he rolled back from that promise about

a punishment budget we heard during the campaign, so I think Mervyn King

's criticism of the Remain campaign was spot-on. There was very little

direction in terms of what spending decisions will be made and many evil

concluded George Osborne would not with the man in the Treasury. That

was meant to be project reassurance, what he said this morning. Did it

not reassure the city? Reassurance comes from the person who will have

their hand on the tiller in September. Also the timetable of the

Conservative campaign and who will lead that and under what basis they

will really do see it Article 50. A lot of people think against that

backdrop a want to go into safe haven assets, airline and property

stocks were sold off as people retreated for the safety of gold and

gilts. Was this the volatility you would expect after a Brexit vote or

will discontinue? That depends on Mark Carney. His

comments were more reassuring. The liquidity. But sterling has moved

very aggressively down against the dollar in the last two trading

sessions. It goes much lower, start to think about significantly higher

inflation, damage to consumer demand as they start to see the price of

food and petrol. Some of those guarantees may well come to pass.

That depends on whether we get sustained economic damage. If the

city looking for more of a spear on what the road map is? It does not

want a Brexit, but does it want to seek child road map? With that

reassure people? Yes is a simple answer, but the timetable that we

spoke about, the 2nd of September, there is a little bit of confusion

from Angela Merkel about how much shadow of the -- negotiation can go

on. She doesn't want any informal ago sessions before article 50 is

invoked. Whether bank staff are kept in London, that will weigh on the

minds of some We were saying the meeting of the

Parliamentary Labour Party is underway at Westminster. Because we

have had a couple of dozen resignations from the Labour front

bench, we have had Jeremy Corbyn hastily appointing lots of people to

take the place of all of those people who resigned. The new people

that he has promoted, they may not be household names. I will give them

to you anyway. Barry Gardner, promoted from shadow energy minister

to replace Lisa Nandi as Shadow Secretary of State for Energy and

Climate Change. Richard Birch and replacing Lord Faulkner.

Some of the names which are pouring into us as Jeremy Corbyn tries to

replenish his Shadow Cabinet. It is an extraordinary evening here at

Westminster, but we will look at the weather prospects now. The best way

to describe this week is no two days the same. Want a dry, next day wet.

We have a quiet evening and overnight period across much of the

country. Just a scattering of showers in the West. But you can see

the gathering waiting in the wings. Not a cold start. 10-14d. It was

stayed right through much of the morning and into the afternoon. If

rain gathers from the West, fairly showery across Ireland and Scotland.

Heavy persistent rain across southern part of Wales along with

the South coast. That will gradually move towards the London area. High

temperatures of 15 degrees. The rain that was to a quieter pace. They

will leave a scattering of showers behind in the far north-west. It

will almost do it again with a repeat performance with more wet and

windy weather coming through from the West. Showers to the North.