A bookmaker has suspended betting on Boris Johnson resigning as prime minister after two cabinet ministers quit the cabinet on Tuesday night.
Mr Johnson was dealt a double hammer blow when Sajid Javid, the health secretary and Rishi Sunak, the chancellor, walked out in protest at Downing Street’s handling of a series of recent scandals.
Mr Sunak said "the public rightly expect government to be conducted properly, competently and seriously", adding "I believe these standards are worth fighting for and that is why I am resigning."
In an incendiary letter, Mr Javid said the British people "expect integrity from their government" but voters now believed Mr Johnson's administration was neither competent nor "acting in the national interest".
The resignations came as Mr Johnson was forced into a humiliating apology over his handling of the Chris Pincher row after he claimed he had forgotten about being told of previous allegations of "inappropriate" conduct.
Bookmaker Coral said it had suspended betting on the PM quitting this year following the resignations.
“In what has been a fast-moving dilemma for Boris Johnson, we’ve pulled the plug on our betting on his future, as it is hard to see a way forward for the PM now,” said Coral’s John Hill.
“Betting is available on Johnson’s successor, and it is Penny Mordaunt who is the early favourite,” added Mr Hill.
Mr Pincher quit as deputy chief whip last week following claims that he groped two men at a private members' club, but Mr Johnson was told about allegations against him as far back as 2019.
The PM acknowledged he should have sacked Mr Pincher when he was told about the claims against him when he was a Foreign Office minister in 2019, but instead Mr Johnson went on to appoint him to other government roles.
Asked if that was an error, Mr Johnson said: "I think it was a mistake and I apologise for it. In hindsight it was the wrong thing to do.
"I apologise to everybody who has been badly affected by it. I want to make absolutely clear that there's no place in this Government for anybody who is predatory or who abuses their position of power."
The PM’s authority had already been damaged by a confidence vote which saw 41 per cent of his MPs vote against him.
The loss of crunch by-elections in Tiverton and Honiton and Wakefield in June triggered the resignation of party chairman Oliver Dowden.
But the resignations of Mr Javid - a former leadership contender - and Mr Sunak, viewed as a potential successor to the PM, mean Mr Johnson's position is now perilous.
Mr Sunak, who had been due to make a joint economic speech with Mr Johnson next week, said "it has become clear to me that our approaches are fundamentally too different".
"I firmly believe the public are ready to hear that truth," he said.
Mr Javid said: "I am instinctively a team player but the British people also rightly expect integrity from their fovernment. The tone you set as a leader, and the values you represent, reflect on your colleagues, your party and ultimately the country.
"Conservatives at their best are seen as hard-headed decision-makers, guided by strong values. We may not have always been popular, but we have been competent in acting in the national interest."
He added: "Sadly, in the current circumstances, the public are concluding that we are now neither. The vote of confidence last month showed that a large number of our colleagues agree. It was a moment for humility, grip and new direction.
"I regret to say, however, that it is clear to me that this situation will not change under your leadership - and you have therefore lost my confidence too."
Further cabinet resignations were expected on Tuesday night.
