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

Drama outside the PLP as Corbyn’s spokesman reportedly has a shouting match with John Woodcock MP over briefing against Corbyn “every day” - a row they just had in front of more than 30 reporters.

“No-one on the leave side doesn’t want free trade with Europe,” prominent pro-leave MEP Daniel Hannan just said on BBC News.

As far as Europe goes, it should be possible to stay inside an arrangement with the EU with bilateral deals, which would allow for free movement, but what we will not have are foreign courts deciding who can come into the UK.

The PLP meeting has finished with MPs deciding to move forward with a vote of no confidence in Jeremy Corbyn’s leadership.

Outside the meeting, the Momentum rally in support of Corbyn continues to gain strength.

S&P’s two-notch downgrade comes hot on the heels of Moody’s, which downgraded the UK’s outlook to negative on Friday night, Graeme Wearden reports over on the business liveblog.

Losing the Triple-A credit rating might not have any immediate impact on Britain’s ability to borrow.

That’s because worried investors have been keen to buy UK government bonds since the Brexit crisis erupted, driving borrowing costs down to record lows.

But it’s a humiliating moment for the government, which put ‘repairing the public finances’ at the heart of its strategy (not always successfully).

Moody’s and Fitch both downgraded the UK in 2013. S&P maintained the AAA through the eurozone debt crisis, but has now lost the faith.

Nicky Woolf here taking over from my colleague Andrew Sparrow on the fourth evening since the UK voted to leave the EU.

The UK has lost its AAA credit rating from S&P in the wake of the country’s decision to leave the EU.

The agency blamed the Brexit vote, saying it has weakened the UK’s “predictability, stability and effectiveness” of policymaking in the UK.

It also believes that growth will be ‘significantly lower’ between 2016 and 2019, averaging just 1.1% per year.

They also warned that foreign firms are less likely to invest in the UK and the sterling could also lose its role as a global reserve currency.

S&P says:

“In our opinion, this outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the U.K. We have reassessed our view of the U.K.’s institutional assessment and now no longer consider it a strength in our assessment of the rating.”

More details available on our Business liveblog here.

27 Jun 201614.04 EDT

Andrew Sparrow

And these are from my colleague Anushka Asthana.

That’s all from me for today.

My colleague Nicky Woolf is taking over now.

Here is more from the Momentum rally, from PA’s David Wilcock.

On Twitter some of those at the Momentum rally, or observing it, are complaining about the large number of Socialist Worker party baners.

This is from Progress’s Richard Angell.

This is from the New Statesman’s Helen Lewis.

This is from the Economist’s Jeremy Cliffe.

27 Jun 201613.51 EDT

Anushka Asthana

Alan Johnson’s intervention at the PLP (see 6.46pm) came as emails leaked to the Guardian reveal that staff in both Corbyn and John McDonnell’s offices removed sentences from statements and speeches, which had been suggested by the remain campaign and workers in Labour’s headquarters.

In one chain of emails referring to the publication of a Treasury report, McDonnell was repeatedly pressed to make his statement more clearly about the EU referendum.

The final wording included a reference to the impact of a Tory Brexit, but removed - “Labour will continue to campaign for Britain to remain in Europe to protect jobs, growth, trade, investment and working people” - which had been suggested by the party’s central press office.

In a separate piece of correspondence, Corbyn’s team edited the sentence, “I am clear just like my shadow cabinet, the trade union movement and our members, that it is in the interests of the people of this country to remain in the European Union”, to take out any personal reference.

They also changed, “we have just nine days to go and I will be working night and day to convince Labour supporters to vote Remain” to “we have just nine days to convince Labour supporters to vote Remain”.

Alan Johnson, chair of Labour In for Britain, has been attacking Jeremy Corbyn at the PLP meeting, according to reports.

This is from Politico’s Tom McTague.

And this is from PoliticsHome’s Kevin Schofield.

And this is from Huffington Post’s Paul Waugh.

For more on what Johnson thinks of Corbyn’s contribution to the referendum, see 2.19pm.