Liz Truss has resigned as prime minister after facing an open revolt from her MPs in a tumultous 24 hours.
The Tory party leader confirmed her departure in a statement delivered outside Number 10 on Thursday.
She is set to become the shortest serving prime minister in history after a period of economic turbulence.
Ms Truss said: “I recognise…given the situation I cannot deliver the mandate on which I was elected by the Conservative Party.”
A leadership election will be completed within the next week Ms Truss confirmed, after speaking to the leader of the 1922 Committee, Sir Graham Brady, in No 10.
Allies of former leader Boris Johnson pushed for him to make a comeback, despite being forced out earlier this year.
There is also an expectation former Chancellor Rishi Sunak could throw his hat back in the ring.
Chancellor Jeremy Hunt was quick to rule himself out as he focuses on calming the financial markets, as was Michael Gove.
Ms Truss will remain as prime minister until a successor has been chosen.
‘Utter shambles’
First Minister Nicola Sturgeon, Labour leader Sir Keir Starmer and Liberal Democrat leader Sir Ed Davey have all called for a general election.
The SNP leader, who Ms Truss had yet to meet, said there are “no words to describe this utter shambles adequately”.
She added: “It’s beyond hyperbole – & parody.
“Reality though is that ordinary people are paying the price.
“The interests of the Tory party should concern no-one right now.
“A general election is now a democratic imperative.”
The first minister said reports that Boris Johnson may be plotting a return to No 10 were “ludicrous”.
She said in a later interview with LBC the former prime minister had resigned in “deep disgrace” adding “if it wasn’t so serious, it would be laughable”.
‘The most disastrous prime minister’
Meanwhile SNP politicians in Perthshire have dubbed Liz Truss the “most disastrous prime minister we have ever experienced” and echoed calls for a general election.
Pete Wishart, MP for Perth and North Perthshire, said: “Liz Truss came in with a clear ideological agenda which has not worked, and the people are being left to pay for it.
“We cannot have a second Conservative prime minister foisted on us without a direct say from the people.
“The Conservatives have lost all authority, they have nowhere to go and they are running out of road.
“What we have just observed demonstrates they are ill-equipped to govern and there is no one in the Conservative Party who has that authority right now.”
He added the tension amongst the party had been “brewing” since Kwasi Kwarteng was sacked as chancellor, and said opposition MPs could “sense something was going to be set off”.
Deputy First Minister and MSP for Perthshire North John Swinney added: “The Conservative Party is a disgrace.
“Their folly of embracing Brexit, the real financial damage done to people by the mini budget and their playing of games amongst the entitled is their shame.
The Conservative Party is a disgrace. Their folly of embracing Brexit, the real financial damage done to people by the mini budget and their playing of games amongst the entitled is their shame. We need an election now and Scotland needs to be independent of this farce.
— John Swinney (@JohnSwinney) October 20, 2022
“We need an election now and Scotland needs to be independent of this farce.”
Scottish Conservative leader Douglas Ross said Ms Truss has “made a difficult choice” but added it is the “right decision”.
The Moray MP added: “There were no other options after recent events.
“We must now move forward quickly with the election of a new leader and prime minister to restore stability for the good of the country.
“It is vital that the Conservative and Unionist Party unites and continues the hard work of getting the whole of the UK through the big challenges we face.”
Shortest-serving prime minister
Ms Truss has clocked up 44 full days in the role – a long way behind the next shortest premiership, that of Tory statesman George Canning.
He spent 118 full days as PM in 1827 before dying in office from ill health.
Ms Truss was to have overtaken this number of days on January 3, 2023.
But she will fall short by more than two months, with the next prime minister due to be elected within the next week.
Sir Graham Brady said challengers for the Tory leadership will need nominations from at least 100 Conservative MPs to make it to the next stage of the race to replace Liz Truss.
Nominations will begin now and close at 2pm on Monday.