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Theresa May and Boris Johnson
Theresa May and Boris Johnson are the two frontrunners to become next Tory leaderGetty
Boris Johnson pulls out of Tory leadership raceITN
16:55

Another dramatic day in British politics is over. Boris Johnson, the former favourite in the Conservative leadership election, has ruled himself out of the running after Michael Gove, his Vote Leave ally, launched a surprise bid.

Meanwhile, Bank of England governor Mark Carny has hinted that the central bank may raise interest rates in reaction the UK's decision to split from the EU, while it doesn't look like Jeremy Corbyn is going anywhere.

The Labour leader has issued another statement calling for unity from the party's supporters. A source close to Angela Eagle told IBTimes UK that the former shadow business secretary delayed the launch of her leadership challenge to give Corbyn more time to quit. Will she now make a move in reaction to Corbyn's latest defiant comments? IBTimes UK for more.

16:28

Jeremy Corbyn has just sent this email to Labour members. In the message, the embattled left-wing leader tells the party's supporters:

United we stand, divided we fall is one of the oldest and truest slogans of the Labour movement.

After last week's referendum, our country faces major challenges. Risks to the economy and living standards are growing. The public is split.

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 elected leader of our party, for a new kind of politics, by 60% of Labour members and supporters. The need for that different approach now is greater than ever.

Our people need Labour Party members, trade unionists and MPs to unite. As leader it is my continued commitment to dedicate our party's activity to that goal.

16:12

Bank of England governor Mark Carney is now making a statement on the central bank's position a week after the UK went to the polls in the EU referendum. The Canadian economist, after joking about losing his job, says Britian has "one of the most flexible economies in the world", while stressing a clear plan is needed after the decision to split from the EU.

Carney also hints that the BoE could cut interest rates: "In my view, and I am not pre-judging the views of the other independent MPC members, the economic
outlook has deteriorated and some monetary policy easing will likely be required over the summer.

"The Committee will make an initial assessment on 14 July, and a full assessment complete with a new forecast will follow in the August Inflation Report. In August, we will also discuss further the range of instruments at our disposal."

Ukip leader Nigel Farage isn''t happy.

15:39

We've just published an article from Alastair Campbell, former director of communications to Tony Blair and IBTimes UK columnist.

Campbell argues that the lack of post-Brexit strategy has led to both Cameron's resignation and Johnson's downfall and also may well see off Gove too.

He adds:

The lack of leadership shown by Johnson and Gove since 23 June has been little short of horrific – and another reason why their star is falling. Never off our screens for the days leading up to the vote, confident and cocky and full of witty one-liners as could be expected for good copy writers.

Then, they vanished. Not showing their faces in the Parliament whose sovereignty this has allegedly all been about. Not facing the media to be questioned about the blatant lies they told. Not even trying to make contact with the prime minister to assess what role they might play in settling the pound, the markets and the mood of a nation they had helped to divide.

So if you can't do strategy, you can't do leadership. And if your vision of teamship is to make people laugh by bumbling and ruffling your own hair, then it becomes blindingly obvious why the conventional wisdom about Johnson was wrong. Our political processes have a way of stopping totally unsuitable people from reaching the very top.

You can read the full column from Campbell here.

15:09

As promised, here's the full story on Eagle delaying her announcement for the labour leadership in the hope he still does "the right thing" and resign

Angela Eagle, Jeremy Corbyn
Former shadow business secretary, Angela Eagle, Labour party leader Jeremy CorbynGetty Images

14:50

Corbyn's people have got in touch with us to deny an earlier report that some of his closest allies are forcing him to remain Labour leader.

"This is silly and deliberate briefing to destabilise his leadership," the spokesman told IBTimes UK. "He is personally determined to continue to carry out the role of leader that he was democratically elected to."

Keep Corbyn
Supporters of Labour leader Jeremy Corbyn hold up signs and shout during Momentum's 'Keep Corbyn' rally outside the Houses of ParliamentJustin Tallis/ AFP

14:32

Ruth Smeeth, the Labour MP at the centre of the anti-Semitism row from before, has responded to the incident in a blog post. She is now also calling for Corbyn to resign and be replaced by someone who has the "backbone to confront racism and antisemitism in our party and in the country".

Smeeth adds:

Corbyn condemns anti-semitic and racial abuseITN

14:21

It appears that Eagle may be expecting Corbyn to finally stand down following the controversy at the press conference announcing the results of the anti-Semitism inquiry by former Liberty director Shami Chakrabarti where he appeared to compare Isis to Israel.

That wasn't even the only thing that caused outrage at the event. From our story published earlier:

"The press conference announcing its findings descended into chaos, however, after Jewish Labour MP Ruth Smeeth reportedly left the room in tears when she was accused by an activist sitting in the audience of being in 'collusion' with anti-Corbyn members of the press.

"The activist, reportedly from the pro-Corbyn Momentum movement, had handed out deselection leaflets and refused to give one to Smeeth, warning "traitors" would be found out. He then took down her name, saying she was in cahoots with a journalist from the Telegraph newspaper.

"Several witnesses said Smeeth, the MP for Stoke-on-Trent North, then left the room in tears."

jeremy corbyn
Labour leader Jeremy Corbyn speaks at the launch of a report into anti-Semitism and Islamophobia within the Labour PartyReuters

14:17

Completing what has been a pretty unpredictable day so far, it turns out Angela Eagle will not be announcing her Labour leadership bid this afternoon as expected.

More from our politics reporter Ian Silvera:

"A source close to Angela Eagle has told IBTimes UK that the former shadow business secretary will not make a speech at 3pm BST, but she will launch a leadership challenge against Corbyn if he does not quit: 'We think he wants to go, but we think people in his office are preventing him. He needs to do the right thing and go now.'"

Full story to follow

Angela Eagle
Angela Eagle, the former shadow business secretary who resigned from the shadow cabinet on Monday, leaves her home in LondonCarl Court/ Getty Images

13:15

In a statement about Labour's report into antisemitism, the Jewish Leadership Council said in a statement: "The final verdict on the Chakrabarti Report will depend upon its implementation. We welcome the rejection of the use of the term Zio, the condemnation of manipulating the Holocaust and of the stereotyping of Jews. That the MacPherson Principle should serve as a guidepost when responding to allegations of antisemitism is also important.

"We are concerned that ruling out lifetime bans and automatic suspensions could send the wrong signal to the community and we are disappointed that the Royall Report into antisemitism at Oxford University was not included and has still not been published.

"It is for the Labour Party to guarantee full, effective and detailed implementation of the report's recommendations. The party must ensure that as a result of this report, antisemitism is pushed out of the party and Jewish members and supporters feel welcome and protected.

"We thank Shami Chakrabarti for her efforts and for her engagement with the Jewish community."

13:13

Labour's antisemitism report, following an inquiry chaired by Shami Chakrabarti, offers 20 recommendations to the Labour Party. However, it did not recommend a lifetime ban for members found to have been antisemitic.

13:10

Reports have come in that a Jewish MP left the antisemitism event in tears and that Labour leader Jeremy Corbyn compared Israel to Isis.

13:08

Members of the Labour Party must stop using Holocaust metaphors, an inquiry into antisemitism recommended.

The inquiry was launched after anti-Semitic comments made by Naz Shah were uncovered on her social media pages, resulting in her suspension from the party.

The inquiry found there was an 'occasionally toxic atmosphere' in the party, the BBC reported, but added it was not overrun with antisemitism.

13:02
Boris Johnson
Former Mayor of London Boris Johnson says he will not be the next Prime Minister of the United Kingdom.Christopher Furlong/Getty Images

There have been varied reactions on Twitter to Boris Johnson's decision not to run for Tory leader, and his name is currently trending. Here are some of the best ones:

12:59

Attorney General Jeremy Wright has spoken out about his preferred candidate for Tory leadership - Stephen Crabbe.

He told the BBC: "I want somebody with the competence and the credibility to make a good deal for Britain."

12:46

Here's also a quick reminder on whether Gove himself thinks he will be a good potential prime minister.

There is also this extract from a 2012 interview on Sky News:

"I don't know what I can do in a way but if anyone wants me to sign a piece of parchment in my own blood saying I don't want to be prime minister, then I'm perfectly happy to do that."

12:32

Some reactions from the past 45 minutes.

12:24

Here's the IBTimes UK's take on Johnson's announcement to not be in running for new leader.

British politics has taken another surprise turn after former Conservative leadership favourite Boris Johnson ruled himself out of the contest. The move comes after justice secretary Michael Gove, a fellow Vote Leave campaigner, made a surprise bid to become David Cameron's successor as prime minister.

Full story: Michael Gove wrecks Boris Johnson's dream of becoming prime minister

Boris Johnson pulls out of Tory leadership raceITN

12:15

So now we're past the 12pm deadline, we know the official candidates in the first stages of the Tory leadership campaign. They are:

Stephen Crabb

Liam Fox

Michael Gove

Andrea Leadsom

Theresa May

These will eventually be whittled down to just two following a vote between Conservative MPs, then a further vote from Conservative members to decide the winner.

Tory MPs
From left: Michael Gove, Andrea Leadsome, Liam Fox, Theresa May, Stephen CrabbGetty Images

11:59

After outlining what Britain needs to do post Brexit, Johnson has concluded that the person to lead the UK to do this "cannot be me". He also did not announce who he is backing in the leadership race.

Key extract from his announcement:

I must tell you, my friends, you who have waited faithfully for the punchline of this speech. That having consulted colleagues and in view of the circumstances in parliament I have concluded that person cannot be me.

My role will be to give every possible support to the next conservative administration to make sure that we properly fulfill the mandate of the people, that was delivered at the referendum and to champion the agenda I believe in.

And, if we do so, if we invest in our children and improve their life chances, if we continue to fuel the engines of social mobility, if we build on the great reforming legacy of David Cameron, if we invest in our infrastructure and we follow a sensible, one nation Conservative approach that is simultaneously tax-cutting and pro-enterprise, then I believe that this country can win and be better and more wonderful and, yes, greater than ever before.

Boris Johnson
Former London Mayor and Brexit campaigner Boris Johnson announces that he will not be running for Conservative Party leadershipDan Kitwood/ Getty Images

11:49

Boris Johnson has announced he will not run in the Tory leadership race, adding there is a change in this country since they voted to leave the EU, a decision which he "passionately supports".

Helpfully points out that "I'm no communist" but wants a fair economic system as some people have not had a par rise in this country for years.

Says now is the time to show to what "what kind of country Britain is" with regards to diversity and how its celebrate the people who come to this country to make it better, as well as allowing the freedom of gay people to get married.

Johnson is yet another candidate who says he will "unite" the party following the Remain/Leave split in the run up to the EU Referendum.

Boris Johnson
Boris Johnson at Downing Street on 11 May 11 2015.Getty

11:24

Photo below of Gove and Johnson in happier, simpler times...

Michael Gove Boris Johnson
Michael Gove and Boris JohnsonAndrew Parsons

11:14

And now here's Hunt's explanation for not standing in leadership race and to back May instead.

I have decided that now is not the right time for me to run for the leadership - though I remain completely committed to ensuring we secure our position as a great trading nation with sensible controls on migration. I believe that Theresa May has the strength, judgement and values to deliver those things. She is the right choice to lead Britain in a challenging period and will make a truly outstanding prime minister.

Jeremy Hunt
Health Secretary Jeremy Hunt Getty