Theresa May will not last another year as PM, say Citigroup analysts

'Our base case remains that we will have a Conservative leadership contest followed by a new general election within the next 12 months,' the bank said

According to reports, some ministers are even favouring Chancellor of the Exchequer Philip Hammond to replace Ms May before the party’s October conference (PA)

Wall Street bank Citigroup has predicted that Theresa May’s Government will not last longer than a few months and that there will likely be another general election within the next year.

In a research note, the lender described Ms May’s role as prime minister as “unsustainable”.

"Our base case remains that we will have a Conservative leadership contest followed by a new general election within the next 12 months," the bank said.

Ms May’s popularity has plummeted in recent weeks and an opinion poll published by the Sunday Times earlier this week found that Labour under Jeremy Corbyn is now five points ahead of the Tories at 46 per cent.

That survey, which took a random sample of 5,000 people, also found that Ms May’s approval rating had slumped while Mr Corbyn’s had risen.

Mr Corbyn stunned pollsters and commentators when he gained 34 seats in the 8 June election, including traditional Tory constituencies like Kensington.

According to reports, some ministers are even favouring Chancellor of the Exchequer Philip Hammond to replace Ms May before the party’s October conference, as part of an alliance with Brexit Secretary David Davis.

The Conservatives are now holding onto power with the help of a "confidence and supply" deal with Northern Ireland's Democratic Unionist Party.

The DUP will support the government in motions of confidence and appropriation or budget votes, by either voting in favour or abstaining — an arrangement DUP leader Arlene Foster said would help provide “stable government”.