Cameron: No Article 50 'At This Stage'

David Cameron has said Article 50 will not be triggered "at this stage" and key negotiations over the UK's exit from the EU will wait for the new Prime Minister.

During a powerful statement to Parliament, Mr Cameron promised to honour the result of the referendum result, even though it was not what he had supported.

But, he was adamant that the vote to leave the EU did not mean Britain turning its back on Europe.

"There can be no doubt about the result ... I am clear, and the cabinet agreed this morning, that the decision must be accepted," Mr Cameron told parliament."

He said he had told German Chancellor Angela Merkel and French President Francois Hollande that more negotiations were needed before the UK will start the process of separating from the EU.

And he repeated his pledge that the process will not get under way until a new Prime Minister is in place.

He said: "The British government will not be triggering Article 50 at this stage.

"Before we do we must determine the kind of relationship we want with EU.

"That is rightly something for the next Prime Minister and Cabinet to decide.

"I've also made this point to the Presidents of the European Council and the European Commission and I will make it clear again at the European council tomorrow.

"This is our sovereign decision and it will be for Britain, and Britain alone, to take."

He added: "Britain is leaving the European Union but we must not turn our back on Europe or the rest of the world."

After he spoke, Ms Merkel, Mr Hollande, and Italian PM Matteo Renzi released a joint statement saying they had agreed there would be no formal or informal talks until Britain triggers Article 50.

Earlier, the Conservative 1922 Committee - which helps form the timetable for a leadership election - recommended that a new leader should be in place by 2 September.

Sky (LSE: BSY.L - news) 's Darren McCaffrey said sources have told him that there will be no transition period after that point - with Mr Cameron stepping down as soon as a new Prime Minister is elected.

Other sources have told Sky News that Mr Cameron will take no part in the election process and will stay on as an MP after the result is declared.

Meanwhile, the pound fell to a new low against the dollar and the FTSE 250 lost more than 6% of its value on fears the UK would go into recession following the Brexit vote.

Mr Cameron spoke before Labour leader Jeremy Corbyn told MPs that the country is divided and will not thank either party for "indulging in internal faction manoeuvring at this time".

Mr Corbyn remains defiant and says he will "not allow a coup", despite eight more shadow cabinet members leaving their posts.

Many of those who spoke in the parliamentary debate praised Mr Cameron for his work as Prime Minister and during the referendum campaign.

Among those who spoke was Liberal Democrat leader Tim Farron, who said: "Can I pay tribute to the Prime Minister. Of course we have not always agreed (but I appreciate his) commitment to bipartisanship during the coalition and his energetic commitment to the Remain campaign."

Mr Corbyn added: "We thank him for his service ... As he announces the end of his premiership it is right to reflect that he led a government that delivered equal marriage ... I want to thank him too for his response to the bloody Sunday inquiry and how he reacted to the tragic murder of Jo Cox."