Davis’ replacement, Dominic Raab, was a prominent Leave campaigner during the EU referendum in 2016 and, before accepting his new role as Brexit secretary, was minister of state for housing from 9 January 2018.

Previously he was minister of state at the Ministry of Justice from 12 June 2017 to 9 January 2018.

Before going into politics, Raab started his career as a business lawyer at law firm Linklaters working on project finance, international litigation and competition law. He later worked at the Foreign & Commonwealth Office between 2000 and 2006 on a range of issues from investor protection to war crimes policy.

Davis handed in his resignation letter on 8 July citing that ‘there have been a significant number of occasions in the last year or so on which I have disagreed with the Number 10 policy line, ranging from accepting the Commission's sequencing of negotiations through to the language on Northern Ireland in the December Joint Report’.

Prime Minster, Theresa May, said to Davis in a letter: ‘I am sorry that the government will not have the benefit of your continued expertise and counsel as we secure this deal and complete the process of leaving the EU, but I would like to thank you warmly for everything you have done over the past two years.’

Jacob Deppe, head of trading at online trading platform Infinox said: 'Sterling held its ground in the wake of David Davis's resignation, suggesting markets believe his departure will further consolidate the likelihood of a soft Brexit. The possibility that this resignation will topple Theresa May and put a more aggressive Brexiteer at the helm of Government, resulting in a teak-hard Brexit, appears to have been dismissed.

'The markets may have called this correctly, but equally it could prove to be a moment of spectacular hubris given the unpredictable flow of events. The Pound is holding its own, and yet David Davis's resignation has the potential to open the political equivalent of Pandora's Box. Yes, Davis may now be on the sidelines but such a key resignation at such a point in time has the potential to strengthen the resolve of those seeking a hard Brexit.

'There's arguably a complacency in markets at present that could come back to haunt them.'

In the latest development in the Brexit story, foreign secretary Boris Johnson has also resigned. He has been replaced by Jeremy Hunt, former health secretary. 

Report by Amy Austin