Conservative MPs have triggered a vote of no confidence in Theresa May, leaving the Brexit negotiations on even thinner ice.
Sir Graham Brady, the chair of the 1922 committee, confirmed on Wednesday morning that he has received at least 48 letters from Conservative MPs calling for a vote of no confidence.
Under Conservative party rules, a leadership contest is triggered when 15% of Conservative MPs submit their letter to the 1922 committee.
A no confidence ballot will be held Wednesday evening in the House of Commons between 6pm and 8pm, and if May does not receive a majority in this ballot, a leadership will contest will be held where Mrs May will not be allowed to stand.
This ballot poses further uncertainty regarding the future relationship between the UK and the EU. Speculation strongly suggests that if Mrs May loses the vote, and a leadership contest is called, that the new Prime Minister will return to Brussels for another round of negotiation in an attempt to draw up a new divorce bill.
Sir Graham Brady announced the ballot around 7:55am, and the GBP/USD rallied 0.38% after May delivered a speech saying that she will contest the leadership. The day’s proceedings, and tonight’s vote, is expected to cause volatility for sterling.