With less than nine months until Britain is due to leave the EU, May has been wrestling with how to enact Brexit without jeopardising business with the world’s biggest trading bloc of 27 countries whilst forging new global deals.
Her plan for a “a business-friendly” Brexit prompted the resignations of Foreign Secretary Boris Johnson last night and Brexit Secretary David Davis on Sunday.
But despite this, sterling rebounded as investors bet she would not face an immediate challenge to her leadership.
Follow below for LIVE UPDATES as Theresa May unveils her reshuffled Cabinet:
11:14am update: Nicola Sturgeon can’t support Brexit plan “as it stands”
Scotland’s First Minister Nicola Sturgeon cannot support Theresa May’s Brexit plan as it stands, adding it was “highly questionable” as to whether she would be able to command majority support in the Commons for the proposals agreed.
Speaking on BBC Radio 4’s Today programme, Ms Sturgeon rejected fears that not backing Mrs May would result in a “no deal” scenario.
The First Minister instead suggested that if the plan agreed at Chequers on Friday was used as a starting point with the EU, it could be “game on” for a deal.
Asked if she would support the Prime Minister, Ms Sturgeon said: “Not on the basis of the plan as it stands.
“I described it at the weekend as a step forward in the sense that there appears to be more realism in it than we’ve heard from the UK Government to date, although that’s not really saying much to be honest.
“But we don’t yet know whether it is acceptable to the EU. It still seems to be cherry-picking, trying to divide the four freedoms.
“It looks horrendously complicated and, of course, it excludes services, and services make up almost 80% of the Scottish economy, and the UK economy for that matter, and a third of our exports.”
She added: “If you look at the arithmetic in the House of Commons first of all before we think about the position across the country, I don’t think there is a majority, in fact I am convinced there’s no majority for no deal.
“I think after the events of the last 24 hours or so it’s highly questionable about whether there is a majority for the Chequers plan as it stands.”
“I think the only thing that actually stands a realistic chance of commanding a majority in the House of Commons, as well as being the right thing for the interests of the economy, is single market and customs union membership.”
11:04am update: May odds on to depart this year
Bookmaker Coral has made Theresa May odds on at 5/6 to leave her position as Prime Minister during 2018.
Mrs May is now out to 4/1 to still be Prime Minister by January 1, 2020.
Coral’s Harry Aitkenhead said: “The writing is now firmly on the wall for Theresa May in our eyes, and we think she’s on borrowed time before following David Davis and Boris Johnson out of the cabinet.
“It would now be a major shock if she managed to last in charge of the Conservatives until another election.”
10:59am update: Airbus boss backs latest Brexit stance
Airbus Chief Executive Tom Enders has given his backing to the latest position on Brexit set out by Theresa May.
This marks somewhat of a u-turn as on Friday he had stated the Prime Minister’s Government had “no clue” over the process.
Mr Enders said on Airbus’ official Twitter account: “The Chequers statement appears to show that HM Government are going in the right direction.”
“We are not shy to request that Brussels and our other home countries are similarly pragmatic and fair.”
10:53am update: Russia hits out at boris Johnson’s relations between nations
Moscow has said that Boris Johnson’s contribution to relations between the UK and Russia was very modest and is now waiting for Britain to have “political epiphany”.
Relations have been strained since the poisoning of former Russian spy Sergei Skripal and his daughter Yulia in March.
Britain’s top counter-terrorism officer confirmed that British woman Dawn Sturgess died on Sunday after being poisoned by the same Novichok nerve agent last week.
Russia has denied accusations of involvement.
Kremlin spokesman Dmitry Peskov told reporters: “We expect, let’s say, Britain to have a political epiphany on this topic.
“Sooner or later we expect some reasonable explanations or arguments about the recent situation in Salisbury and the situation that followed it.”
10:27am update: May unveils her reshuffled Cabinet
The Prime Minister has tweeted a picture of her reshuffled Cabinet following a meeting this morning.
Alongside the picture, Mrs May wrote:
“Productive Cabinet meeting this morning – looking ahead to a busy week.
“And sending our best wishes to @England for tomorrow!”
9:37am update: Davis says Cabinet meeting at Chequers was an “ambush”
Ooutgoing Brexit Secretary David Davis has reportedly told friends that last week’s meeting at Chequers was an “ambush”, adding he would have had to machine-gun my way out”.
A frinds of Mr Davis told The Times that Mr Davis remarked: “Chequers was an ambush. I would have had to machine-gun my way out.
“If I had resigned I would have called a Daimler and done it in style.”
Mr Davis had threatened to resign on a number of occasions since his appointment as Brexit Secretary after the 2016 referendum.