General election 2019: Spending and Scottish independence to be day two's battlegrounds

Tom Watson's bombshell resignation has sent shock waves through the general election campaign as party leaders embark on day two of the battle for votes.

Labour's deputy leader stunned his party's MPs by announcing he is to quit on election day, five weeks today, claiming the time had come to start a different kind of life and that his decision was personal, not political.

And while his decision has dismayed his allies among Labour MPs in parliament, left-wingers who launched a botched attempt to oust him at Labour's conference, will claim it has strengthened Jeremy Corbyn's grip on his party.

Here's what happened on day one of the campaign

Labour's announcement came at the very moment Boris Johnson was attacking Mr Corbyn in a speech at a Tory rally, accusing the Labour leader of planning new referendums on Brexit and Scottish independence.

And the prime minister is heading to Scotland on the second day of the campaign, claiming Labour would agree to the Scottish National Party's demands for a second referendum on independence.

From proxy votes to first past the post - your election dictionary

Here's everything you need to know before we head to the polls once again on 12 December.

"A vote for the Scottish Conservatives is a vote to stop a second independence referendum and to get Brexit done so we can spend 2020 taking back control of our fishing waters, getting a fairer deal for our farmers, and investing in public services to give people better healthcare and better education," the PM said ahead of his visit.

"The other choice is a vote for Jeremy Corbyn who would spend next year dancing to the SNP's tune, wasting the year with two divisive referendums - one on the EU and one to give up on our union.

"Only a vote for the Conservatives will stop the SNP's plans to break up the UK - the most fantastic and successful political union in the world. I will never give up on our incredible union."

PM seeks to move past Tory setbacks with attack on Corbyn 'horror show'

But commenting ahead of Mr Johnson's visit, SNP leader Nicola Sturgeon said: "The only thing Boris Johnson should be coming to Scotland to do today is apologise for the chaos he and his party have subjected us to for years.

"He is a prime architect of the Brexit vote and the utter shambles it has now led to."

Conservative lead drops two points to 11% - poll

Also stepping up the Tory attack on Labour is the Chancellor, Sajid Javid, who is claiming in a speech in Manchester: "Jeremy Corbyn and John McDonnell are like the anti-vaxxers of economic policy.

"Not only did they reject the treatment needed to heal our economy and get the deficit down by four-fifths, they now want to take every step imaginable to make the country sick and unhealthy again.

"There are serious consequences to these fantasy economics. Only the Conservatives understand that there is no such thing as government money.

"After a decade of recovery, of difficult decisions, we can't let Labour turn back the clock, let spending get out of control and make hard-working families pay the price.

"We won't let Labour off the hook like last time. Look to the lessons of history - they'll ruin our finances, raise your taxes and saddle the next generation with debt.

"Every single Labour government has left our country's economy in a mess."

General Election 2019: From proxy votes to first past the post - your election dictionary

For the third time in four years, we are going to have a general election. Here's everything you need to know before we head to the polls again on 12 December

Mr McDonnell, the shadow chancellor, is also speaking in north-west England, in his home city of Liverpool in his first major speech of the campaign.

He is outlining his plans to break up the Treasury and move a big part of its decision-making to the north of England.

Mr McDonnell is also pledging an additional £150bn in a new Social Transformation Fund, to be spent over the first five years of "our Labour government".

He will say that the fund will be used to upgrade and expand schools, hospitals, care homes and council houses. He will also promise that a "powerful section of the Treasury" will be based in the north of England.

Mr McDonnell says a National Transformation Fund unit of the Treasury will be launched to deliver the plan to ensure that key decisions about investment in the north are made in the north: "I can confirm that this powerful section of the Treasury Unit will be based here in the North.

"At the same time my Treasury ministerial meetings will no longer be solely in London.

"Labour's Treasury ministers will meet outside of London and will have a ministerial office in the North. The centre of gravity, of political gravity, is shifting away from London."

Meanwhile, in what could be a highly significant move, the Liberal Democrat leader Jo Swinson is announcing a Remain Alliance with Plaid Cymru and the Green Party, with candidates standing aside to boost the anti-Brexit vote.

"We are delighted that an agreement has been reached," she said. "This is a significant moment for all people who want to support remain candidates across the country."

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