Sir Keir Starmer has announced he will resign as Prime Minister less than two years after coming to power.
In a statement outside 10 Downing Street, Sir Keir said his party had asked “whether I am best placed to lead us into the next general election”.
He said: “I have heard the answer of my parliamentary party to that question, and I accept that answer with good grace.”
Sir Keir’s emotional statement followed a weekend spent mulling his future with his family at Chequers, the Prime Minister’s country residence.
While his decision remained unclear early on Monday, ministerial allies and Number 10 staff gathered in Downing Street shortly before 9.30am in an indication Sir Keir was preparing to announce his resignation.
Sir Keir’s decision to stand down means Labour will now hold a contest to choose his successor, with Andy Burnham seen as the frontrunner.
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The former Greater Manchester mayor is expected to arrive in Westminster to be sworn in as an MP on Monday afternoon after winning the Makerfield by-election.
Former health secretary Wes Streeting is also expected to put himself forward as a candidate.
Sir Keir said he would ask Labour’s ruling National Executive Committee (NEC) to set out a timetable that would see a new leader in place by the time Parliament returns from its summer recess on September 1.
He said nominations would open on July 9, the day after he is expected to return from a Nato summit in Turkey, and close to the start of the summer recess on July 16.
Announcing his resignation, Sir Keir said: "The question my party is asking now is whether I am best placed to lead us into the next general election.
“I have heard the answer of my parliamentary party to that question, and I accept that answer with good grace.
“Every decision I have taken has been about putting the country I love first.
“That is why I will resign as leader of the Labour Party.”
Sir Keir Starmer also said that becoming Prime Minister was the “proudest moment of my life”.
He added: “Walking up this street two years ago was the proudest moment of my life, a new Labour government, the first in 14 years, a page in our country’s history turned after years of disappointment and despair, the chance to change the lives of millions of people for the better, that’s what I came into politics for the journey to that point was not easy.
“Six years ago, I inherited a Labour Party that was politically, financially, and morally bankrupt.
“I was told time and time again that my party was finished, that we were consigned to history, that a majority at the general election, let alone a landslide majority, was impossible, but we proved those people wrong, because we changed our party, ripping out the poison of antisemitism, restoring trust on the economy, defence, and national security, and becoming a party that once again stood proudly with, not against, our national flag.”
Sir Keir added that he will spend more time being the “best husband” and “best dad” after his resignation.
Speaking from Downing Street, he said: “I want to thank the brilliant Number 10 staff and our country’s extraordinary Civil Service who dedicate their lives to public service.
“And when I leave the biggest job in the country, I shall spend more time on the most important job, being the best husband I can to my fantastic wife, Vic, who has been a rock by my side through good times and bad, and being the best dad I can to my beautiful children, who are my pride and my joy.”
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