AT A GLANCE: What happens now the UK has voted to leave? 

  • David Cameron is due to make a statement outside 10 Downing Street before 8am. He is expected to announce intentions to either stick out the negotiations or step down  
  • The divorce of the union will not be a clean cut. The referendum is not legally binding and so the Government must next decide when to trigger Brexit formally, starting a process that could take years
  • The Treasury may roll out back-up plans to try to rebuild relationships with EU leaders and fill the gap left by the Brexit
  • The UK itself could be threatened with a split, as SNP leader Nicola Sturgeon said she would initiate another Scottish Referendum
  • The value of the pound will plummet, at least in the initial aftermath, and costs are set to increase for holidays to Europe
  • Decisions about things such as the rights of UK citizens in Europe and of EU citizens in the UK could be made within months, whereas long-term issues like trading could take years to negotiate

It's going to be a turbulent day on the markets.

The pound has already hit its lowest point since the 70s as the results come in. That was an expected result of the uncertainty over the vote, with the out campaigners saying that any losses to pensions funds, for example, are likely to be recovered in the medium term.

We're still in the European Union

It goes without saying that should we vote Brexit we're not instantly and immediately out of the EU. David Cameron will need to invoke Article 50 of the Treaty on European Union.

The referendum itself is not legally binding (although it's very unlikely that any government would refuse to abide by the result) but Article 50 is legally binding and 

Article 50 requires the member state to notify the EU of its withdrawal and states a two year window for the EU to then try to negotiate a withdrawal agreement with that state.

The referendum result does not count as notification - but that could take place at an EU summit scheduled for June 28 to 29. David Cameron has pledged to invoke it immediately, but it's possible officials could try to put it off.

Once Britain invokes Article 50, Britain and EU leaders would have to hash out issues like trade tariffs, migration, and the regulation of everything from cars to agriculture.

What sort of options are there?

There's the Norway model or the Swiss model, or the so-called Canadian model.

The Norway model would mean Britain would have access to the single market but it would have no vote over EU rules. It's less expensive, but not much. Norway is part of Schengen border-free area, but we have no idea what conditions on freedom of movement the EU might require to give us similar access to the single market.

Switzerland have to follow EU law in the areas that give it access to the EU market, and also pay into the EU budget but less than the Norwegians. 

Canada is still negotiating its free trade deal with the EU. The agreement will remove most duties by 2023, but some tariff barriers will be left in place.

If no agreement were reached, Britain would have to fall back on trading with the EU under World Trade Organisation rules, which would imply tariffs and no special deal for financial services. 

Will David Cameron have to resign?

Many leave campaigners, including Boris Johnson and Michael Gove has signed a letter calling on him to stay. Part of the question would be who would be responsible for negotiating our exit deal and, of course, the deep divisions in the Conservative party that have been opened up by the campaign.

Will there be another general election?

Parliament could bring down the government altogether through two no-confidence votes, meaning the country would face another general election. But it doesn't seem likely.

What about Scotland?

Scotland voted Remain. So it's not out of the question that we might be looking at a second Scottish Independence referendum in the next few years. Were Scotland to vote to leave the UK, that would have significant implications for the political landscape, by reducing even further Labour's traditional support base.