Prime Minister David Cameron resigns over European Referendum humiliation as markets plunge

His voice cracked with emotion as he announced his decision just hours after allowing the nation to start down the road of no return by voting to leave the EU in a referendum he agreed to hold.

Flanked by wife Samantha, Cameron said he had informed the Queen of his decision to remain in place for the short term, but will hand over to a new Prime Minister by the time of the Conservative annual conference in October.

He said: “The British people have voted to leave the European Union and their will must be respected. The will of the British people is an instruction that must be delivered."

"The country requires fresh leadership to take it in this direction."  

"I will do everything I can as Prime Minister to steady the ship over the coming weeks and months, but I don't think it would be right for me to try to be the captain that steers our country to its next destination."

A clearly emotional Cameron added: "I love this country and I feel honoured to have served it and I will do everything I can in future to help this great country succeed."

Cameron said he accepted the decision of the electorate, which voted by 52% to 48% to quit the EU.

He said he would now leave it to his successor to invoke Article 50 of the Lisbon Treaty, which kicks off the two-year process of negotiating a new trade relationship with the UK's former partners.

But even as he spoke, the pound and FTSE were being pummelled on the markets who had speculated on a remain vote, suffering their most brutal fall in history. 

There were immediate calls for both Scotland and Northern Ireland to consider new referendums to leave the the UK after the majority of their populations voted to remain in Europe, only to find themselves staring at an exit after millions in England and Wales voted for Brexit.

The SNP’s Westminster leader Angus Robertson said the result could spark a new “constitutional crisis” and pressure for the Scottish Government to stage a second Independence Referendum.

First Minister Nicola Sturgeon, who was holding a media conference at Bute House in Edinburgh around 11am, said Scotland had delivered a "strong, unequivocal vote" making clear that "the people of Scotland see their future as part of the European Union".

It was stated previously that Scotland out of the EU against its will would lead to the invocation of a manifesto promise to stage another ballot if there was a "significant and material" change in circumstances from the 2014 vote.

Alex Salmond, who stood down as Scotland's first minister after failing to secure independence in a referendum vote in 2014, said the PM's resignation was "inevitable".

He told the Today programme: "I, unlike some others, have been in this position of being the first minister of Scotland who organised the referendum, took my case to the people and lost.

"And you couldn't possibly continue in office under these circumstances. I never had a sliver of doubt that a Brexit would be followed very swiftly by the Prime Minister's resignation.

Sinn Fein's Gerry Adams and Martin McGuinness said the UK government had now "forfeited" the right to govern the people of Norther Ireland and would call for a new poll on opening the Border with Ireland.

But its First Minister and DUP leader Arlene Foster hailed the poll victory, and said; "I think it is a good result for the United Kingdom."

As markets and the pound plunged into free fall, Cameron, who wore a sober blue tie as he stood in front of 10 Downing Street to announce his resignation after six years in charge, pleaded for stability.

He said quitting was "not a decision I have taken lightly", and added: "I do believe it is in the national interest to have a period of stability and then the new leadership required.

"There is no need for a precise timetable today, but in my view we should aim to have a new prime minister in place by the start of the Conservative Party conference in October."

"The negotiation with the European Union will need to begin under a new prime minister and I think it is right that this new prime minister takes the decision about when to trigger Article 50 and start the formal and legal process of leaving the EU."

Scottish Secretary David Mundell said: "David Cameron has been a great leader of my party and of our country. I was proud to be one of his first supporters during the 2005 leadership election and I have never regretted that decision for a moment. His achievements in rescuing our economy and in social reform will stand the test of time.

"Today he has once again put country before self."

Two of the likely front runners to replace him were glowing in their tributes for Cameron, despite being on opposite sides of the debate.

Former London mayor Boris Johnson said: ""I have known David Cameron for a very long time and I believe he has been one of the most extraordinary politicians of our age.

"A brave and principled man who has given superb leadership of his party and his country for many years."

Fellow Tory Michael Gove said Cameron had: "led this country with courage, dignity and grace. He and the Chancellor rebuilt our economy."

He added: "He has made opportunity more equal in our society. He has exemplified the very best in public service. He deserves to be remembered as a great prime minister."

Moments  after the PM's statement, Bank of England governor Mark Carney tried to usher in some calm as he announced he was making £250 billion available to support markets.

He pledged that the Bank "will not hesitate to take additional measures as required as markets adjust and the UK economy moves forward".

But he admitted volatility "can be expected" in the wake of the Brexit vote, saying: "Some market and economic volatility can be expected as this process unfolds.

"As a backstop, and to support the functioning of markets, the Bank of England stands ready to provide more than £250 billion of additional funds through its normal facilities."

"The Bank will not hesitate to take additional measures as required as markets adjust and the UK economy moves forward."

More than £100 billion was wiped off the FTSE 100 as the index fell more than 7%, while the pound also crashed 8% against the US dollar.

Carney tried to also offered reassurance that there will be no immediate changes as a result of the vote.

He said: "There will be no initial change in the way our people can travel, in the way our goods can move or the way our services can be sold. 

“It will take some time for the United Kingdom to establish new relationships with Europe and the rest of the world."

Foreign Secretary Philip Hammond did not rule out an emergency summer budget to respond to the damage the Government expects the Brexit vote to inflict on the UK economy. 

Ahead of the referendum, Chancellor George Osborne - who could see his own future on the line despite ambitions  to hold office as Prime Minister - warned that a Leave vote might result in higher taxes, lower public spending or both.

Hammond said that the Government's fiscal consolidation programme would now become "more difficult".

He added: "We can't just ignore the economic facts. We have to respond to them. We will have to look at the situation, see where the market settles, see what the immediate impact on the economy is and decide how best to proceed."

The UK Cabinet will now meet on Monday, the day before Cameron goes to Brussels for a summit where he will "explain the decision the British people have taken and my own decision" to leaders of the remaining 27 member states.

In Brussels and capitals around Europe, political leaders and officials went into emergency meetings to plan a response to the UK's seismic decisions, which sent shockwaves around the world.

European Council president Donald Tusk said there was "no way of predicting all the political consequences of this event, especially for the UK" and called for calm.

He said: "It is a historic moment but for sure not a moment for hysterical reactions." 

Some 72.2% of the 46,500,001 eligible voters turned out at polling stations, said the Electoral Commission. The total turnout of 33,568,184 was just short of the highest ever participation in a UK general election, in 1992.

With ballots counted in all 382 polling areas - including Gibraltar, which voted overwhelmingly to stay in the EU - Leave received 17,410,742 votes (51.9%) against 16,141,241 (48.1%) for Remain.

The result has also led to disquiet over the role of Labour leader Jeremy Corbyn who many believe did not do enough to help get his party's vote out.

He said a General Election might now be needed in the wake of the EU poll result.

But amid growing talk of a coup, former Prime Minister and Labour leader Tony Blair said Corbyn's support for the In campaign had been "pretty lukewarm".

He added: "We didn't mobilise our supporters to understand that this is not a protest vote against the government or the establishment."

US Presidential hopeful Donald Trump said it is a "great thing" that the people of the UK have "taken back their country" in voting to leave the EU, as he touched down at his golf resort in Scotland.

The billionaire arrived in his "Trump" emblazoned helicopter at the Turnberry resort in South Ayrshire to officially open the revamped resort he bought in 2014, just an hour after Prime Minister David Cameron said he intended to stand down in October.

He gave a thumbs-up as he left his helicopter and shook hands with workers on his way to the hotel before making the comments about the EU referendum result.

Mr Trump said: "I think it's a great thing that's happened. It's an amazing vote, very historic.

"People are angry all over the world. They're angry over borders, they're angry over people coming into the country and taking over and nobody even knows who they are.

"They're angry about many, many things in the UK, the US and many other places.

"This will not be the last."

He said UK divisions "will heal" as "it is a great place" adding: "I said this was going to happen and I think it is a great thing.

"Basically, they took back their country. That's a great thing.

"I think we're doing very well in the United States also, and it is essentially the same thing that is happening in the United States.”

Tim Farron, leader of the Liberal Democrats, said the vote for Brexit would be the PM's legacy.

He said Mr Cameron had "no choice" but to resign and that Tory in-fighting over Europe had forced the country "over the edge".

He said: "Twelve months ago David Cameron had the best result of his career. Today, the worst.

"I was honoured to share a platform with the Prime Minster on this campaign, but this result, this self-inflicted wound, will be his legacy.”