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Brexit: Labour MPs to hold no-confidence vote in Jeremy Corbyn - as it happened

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Key events
Jeremy Corbyn struggles through the crowd to deliver his speech outside the Houses of Parliament
Jeremy Corbyn struggles through the crowd to deliver his speech outside the Houses of Parliament. Photograph: Jeff J Mitchell/Getty Images
Jeremy Corbyn struggles through the crowd to deliver his speech outside the Houses of Parliament. Photograph: Jeff J Mitchell/Getty Images

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Libby Brooks
Libby Brooks

The Scottish secretary, David Mundell, on BBC Radio Scotland’s GMS, repeatedly sidestepped the question about the transfer of powers from Westminster to Holyrood necessary to hold a second independence referendum.

I believe that the arguments for Scotland being part of the UK are as compelling now as in 2014.

Mundell suggested that, despite Scotland voting unanimously to remain, the mandate to leave was UK-wide. He added that it was “unhelpful” that the first thing Nicola Sturgeon mentioned after the leave result was independence, warning that the Scottish people would not respond well to “opportunism”.

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Steven Morris
Steven Morris

The Welsh government’s cabinet is meeting this morning to discuss the implications of the EU referendum vote for Wales.

Ahead of the meeting, the first minister and Labour leader in Wales, Carwyn Jones, said it was one of the most important since devolution. He said:

We will look at an initial evaluation of the potential consequences of this result for Wales, and agree how we will take the priorities forward in the national interest.

On Friday, I set out my priorities for action, including even closer working with Welsh business to protect jobs, renewed intergovernmental engagement and a commitment to protect and maintain EU funding for Wales for as long as possible.

The full implications of this vote are still far from clear and will not be so for some time. However, one thing is certain. We as the Welsh government are utterly determined to stay internationally engaged, outward-looking and pro-business in our approach. That is what will maintain business confidence, and that is what will help inward investors take the right decisions in this new, uncertain environment.

Let us not forget the steel crisis, that we are working so hard to resolve, remains ongoing. We will continue to work with Tata and support steelworkers as we look to meet the immense challenges thrown up by the referendum result.

Jones has made it clear that he has not considered resigning though Labour failed to get out its vote in traditional heartland areas like the south Wales valleys. Seventeen of the 22 local government areas in Wales voted to leave the EU.

Carwyn Jones. Photograph: Matt Cardy/Getty Images
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Tom Watson, the Labour deputy leader, is due to meet Jeremy Corbyn for talks later today. Watson hinted yesterday that he will tell Corbyn it is time to go, but Corbyn’s allies are saying that the leader will say he is carrying on. This is from Sky’s Tamara Cohen.

Corbyn source: Jeremy Corbyn will tell Tom Watson he's appointed a new shadow cabinet and will continue to appoint them throughout the day

— Tamara Cohen (@tamcohen) June 27, 2016
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Labour MP Jess Phillips has resigned as a parliamentary private secretary to the shadow education team.

Seems slightly highfalutin to resign as I was just the PPS in the Education Team but it was Lucy who asked me, she is gone. So am I.

— Jess Phillips MP (@jessphillips) June 27, 2016

Phillips was PPS to Lucy Powell. Given that Powell resigned as shadow education secretary yesterday, Phillips was probably out of a job anyway, but clearly she wants to make a point.

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Heseltine calls for second referendum once EU renegotiation deal clear

Andrew Sparrow
Andrew Sparrow

Good morning. I’m Andrew Sparrow, taking over from Claire and Matthew.

Lord Heseltine, the former Conservative deputy prime minister, is on the BBC Radio 4 Today programme now. He says that before the referendum, Nigel Farage, the Ukip leader, said a close result could justify a second referendum. Farage was talking about a narrow remain win, but Heseltine says he thinks the same argument applies in the light of the narrow leave win. He says he will be signing the petition for a second referendum.

  • Heseltine calls for a second referendum.

Asked to clarify what he wants, Heseltine says that during the referendum it was not explained what life outside the EU would look like. Once we know the answer to those questions, the public are entitled to have another say.

He says the House of Commons is broadly supportive of staying in the EU. Before it voted to leave the EU, he says there would need to be a second referendum, or an election.

Michael Heseltine. Photograph: Andy Hall/The Observer
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Labour continues to haemorrhage frontbench spokesmen and women.

Yvonne Fovargue, the Shadow Business Minister, has resigned.
Steve Reed, Trickett's deputy at DCLG, has gone too.

— George Eaton (@georgeeaton) June 27, 2016

And there’s still a vacancy at the top for the shadow Scottish secretary, shadow lord chancellor and shadow attorney general.

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We’re struggling to keep up with the resignations from the junior ranks of Labour’s team. At least two more parliamentary private secretaries resigned as Corbyn announced a new shadow cabinet.

Neil Coyle resigns as Labour PPS on Sky News https://t.co/5xUCH7iIVh

— Zoe Catchpole (@mazoe) June 27, 2016

Resignation of Labour justice PPS Chris Matheson MP significant: On the left of the party and former Unite official.

— Kevin Schofield (@PolhomeEditor) June 27, 2016
Graeme Wearden
Graeme Wearden

It looks like Osborne has managed to calm the markets, a bit. The FTSE 100 is down just 20 points right now (-0.37%).

There’s more here on our business live blog.

New shadow cabinet

Emily Thornberry Photograph: Finbarr Webster/REX/Shutterstock

Jeremy Corbyn has replaced 10 of the shadow ministers who resigned (or were sacked in Hilary Benn’s case).

The reshuffle involves moving Emily Thornberry from shadow defence minister to shadow foreign secretary, and replacing her with the new MP for Norwich South, Clive Lewis.

Diane Abbott is also promoted to shadow health secretary.

Here’s the full list:

  • 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 – Rachel Maskell
  • Shadow voter engagement and youth affairs – Cat Smith
  • Shadow Northern Ireland secretary – Dave Anderson
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Back to Osborne. Here’s the full text of his response to questions about whether there will an emergency Brexit budget as he had threatened.

There will have to be action to deal with the impact on the public finances, but of course it is perfectly sensible to wait until we have a new prime minister. Of course, the economy is going to adjust, and there will be an impact on the public finances, that’s what I said before the referendum, I don’t resile from anything I said before the referendum. And I said there would have to be action, actually as it happens in the autumn, to address that. I think it is perfectly sensible to wait until we have new prime minister before we address that.

And asked whether he could serve in a government committed to leaving the EU, Osborne said: “It is my country right or wrong. And intend to fulfil my responsibilities to the country.”

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