UK Politics: Theresa May to be PM but odds shorten on 2016 General Election

Theresa May is set to become Prime Minister after Andrea Leadsom sensationally withdrew from the Conservative leadership contest on Monday. With May 1.011/100 to succeed David Cameron, it's now merely a question of when the Home Secretary will get the keys to number ten Downing Street.

It looks likely to be this week, possibly even today. This is uncharted territory for UK politics but Chancellor George Osborne has estimated that May will be PM "in the next few days."

Bettors have been quick to react to the latest in a string of astonishing developments. After it was confirmed that the Conservative party would not reopen the leadership contest for another candidate to stand against May, the odds on a General Election in 2016 have narrowed to 3.55/2.

At the weekend, an election this year was trading at 5.85/1, as both May and Leadsom had dismissed the idea. But this latest surprising turn of events adds fuel to the view that, with the manifesto on which the Tories came to power last year in shreds, the country should be allowed to choose its government.

Today, Labour wasted no time in calling for a General Election. Their election coordinator John Trickett said it was essential, following the instability of Brexit and May's coronation. But Labour have their own internal battles to resolve.

You might not have noticed, overshadowed as it was by Leadsom's stunning withdrawal, but this morning Angela Eagle announced that she's challenging Jeremy Corbyn for the Labour leadership. She's determined to oust Corbyn and Labour MP Owen Smith is also said to be weighing up a bid.

Could we a see an Eagle v May general election in 2016? At present, former-Business Secretary Eagle is 4.3100/30 to be her party's next leader and Smith is 5.14/1, which is hardly encouraging for those who want to see Corbyn gone.

May can expect a bit of an opinion poll bounce when she begins her time in number ten, although at the moment bettors think the most likely outcome at the next General Election is No Overall Majority 2.265/4. A Tory victory is close behind at 2.35/4, while a Labour majority is 6.611/2.

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