Live updates as Prime Minister Boris Johnson resigns and tells the nation he is 'sad to be giving up the best job in the world'

The pound lifted higher this morning after news broke that Boris Johnson will quit as leader of the Conservative Party.

Sterling and UK stocks all strengthened as investors hoped the news will spell relief for UK assets, which have come under heavy pressure in recent months.

The pound slid to a two-year low against the US dollar on Wednesday.

However, it moved 0.88% higher against the dollar to 1.201 on Thursday while it also rose by 0.74% to 1.177 against the euro.

The "business of Government continues", Cabinet Office minister Michael Ellis has told MPs after Labour called an urgent question on the functioning of Government.

Responding to deputy Labour leader Angela Rayner's question, he said: "As the House will be aware, it is widely reported that the Prime Minister is about to make an important statement shortly.

"I can confirm that it is correct that the Prime Minister will speak shortly. I cannot pre-empt the Prime Minister's statement and the House and nation will hear more imminently.

"In the meantime, the business of Government continues, supported in the usual way by our excellent civil service. There will be continue to be ministers of the crown in place including in all great offices of state. We must continue to serve our country, constituents and the general public first and foremost."

Leeds East MP Richard Burgon is among a number of people calling for a General Election to be held:

The timetable for the Tory leadership contest will be agreed between the 1922 Committee, which runs the parliamentary proceedings to whittle the candidates down to two, and Conservative headquarters.

But critics of the Prime Minister suggested he should not be allowed to remain in office until the autumn.

George Freeman, who quit as science minister on Thursday morning, said that now Mr Johnson had "finally done the decent thing" he should "hand in the seals of office, apologise to Her Majesty, allow her to appoint a caretaker under whom ministers can serve, so the Conservative Party can choose a new leader properly".

Support for Johnson within the Conversative Party has collapsed in the past 48 hours, with members at both parliamentary and local authority level calling for him to go.

Andrew Carter, leader of Leeds City Council’s Conservative Group had said yesterday that it was time for “the Conservative Party and the country to move on” from Mr Johnson, adding “we can’t go on like this”.

Elmet and Rothwell MP Alec Shelbrooke had earlier said: “It is now clear to me that the Prime Minister's leadership of the Conservative Party can go on no longer as it is causing a distraction from the serious international issues we face as a country.”

And Pudsey, Horsforth and Aireborough MP Stuart Andrew stepped down from his role as housing minister yesterday. He said he had allowed his endeavour for loyalty and unity to override his judgement, but the Conservative Party and country deserve better.

The city’s third Tory MP, Andrea Jenkyns, who represents Morley and Outwood, is unable to comment on national issues due to her role as an assistant government whip.

Boris Johnson will make a statement to the country later today confirming his decision to quit as Tory leader.

The resignation comes after the Prime Minister haemorrhaged support among his ministers and MPs.

More than 50 MPs have resigned from government or party roles since Tuesday night, when the mass exodus was triggered by the resignations of Rishi Sunak and Sajid Javid from the Cabinet.

The Prime Minister had sought to defy his critics and carry on in office, despite warnings from Cabinet colleagues that this was not sustainable.

But resignations continued and Chancellor Nadhim Zahawi - who was only appointed to the role on Tuesday - went public with his call for the Prime Minister to quit.

Boris Johnson is quitting as Tory leader after ministers and MPs made clear his position was untenable.

He will remain as Prime Minister until a successor is in place, expected to be by the time of the Conservative Party conference in October.

A No 10 source said Mr Johnson spoke to Sir Graham Brady, chairman of the Conservative 1922 Committee, to inform him of his decision.

"The Prime Minister has spoken to Graham Brady and agreed to stand down in time for a new leader to be in place by the conference in October," a No 10 source said.