She made the announcement during a statement outside Downing Street.
It came after a Cabinet revolt over her Brexit plan. It paves the way for a contest to decide the new Prime Minister.
In a statement, Mayor of London Sadiq Khan said:
I don't agree with Theresa May on much, but I have some sympathy with her today. Her extremely difficult job was made impossible by the Brexit extremists in the Conservative Party.
It is totally unacceptable for Britain's future to be decided by these same people. The British people, particularly the next generation, deserve far better than this.
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