The UK's European Commissioner has announced he will stand down from his post in the wake of Thursday's referendum vote to leave the EU.

Lord Hill of Oareford said he was "very disappointed" by the outcome of the vote and was convinced UK membership was "good for our place in the world and good for our economy".

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He will continue his work as commissioner for financial stability until July 15 to allow for the "orderly handover" of his responsibilities to commission vice-president Valdis Dombrovskis of Latvia.

In a statement, commission president Jean-Claude Juncker said the UK remains entitled to a seat on the commission while it is a member of the EU, and made clear he was ready for "swift" discussions with Prime Minister David Cameron on a replacement.

The Herald: A LEADING LIGHT: European Commission President Jean-Claude Juncker, who earns nigh on £250,00 a year. Picture: AP /Virginia Mayo.

Mr Juncker said he had decided to hand the financial stability brief to Britain in 2014 "as a sign of my confidence in the United Kingdom's membership of the European Union", adding: "To my great regret, this situation is now changing."

He said: "I have tried to convince Lord Hill to stay on as Commissioner. I consider him to be a true European and not just the British Commissioner. However, I understand his decision and I respect it."

In a statement, Lord Hill said: "Like many people here and in the UK, I am obviously very disappointed about the result of the referendum.

"I wanted it to end differently and had hoped that Britain would want to play a role in arguing for an outward-looking, flexible, competitive, free-trade Europe. But the British people took a different decision and that is the way that democracy works.

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Many of the UK's elected members of the European Parliament (EP) have vowed to work until they losetheir jobs as a result of Brexit.

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"As we move to a new phase, I don't believe it is right that I should carry on as the British Commissioner as though nothing had happened."

He added: "I came to Brussels as someone who had campaigned against Britain joining the euro and who was sceptical about Europe.

"I will leave it certain that, despite its frustrations, our membership was good for our place in the world and good for our economy.

"But what is done cannot be undone and now we have to get on with making our new relationship with Europe work as well as possible."

Former PR lobbyist and Conservative minister Jonathan Hill, 55, was appointed by Mr Cameron in 2014 to take over the UK's seat on the commission from Baroness Ashton, who had served under Mr Juncker's predecessor Jose Manuel Barroso.

The Herald: Prime Minister David Cameron speaks at a Remain in the EU campaign event at the Oval cricket ground Picture: Dylan Martinez - WPA Pool/Getty Images

A Downing Street spokesman said: "The Prime Minister is sorry that Lord Hill has decided to step down. He is extremely grateful to Lord Hill for his service at the European Commission in the crucial portfolio of financial stability, financial services and capital markets union.

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"He has done an excellent job as a commissioner - helping to focus the European Commission on measures to promote growth and jobs, in particular his proposals to increase the flow of affordable investment capital across the EU and for giving the UK a strong voice in the European Commission. The Prime Minister wishes Lord Hill well for the future."