Yousaf said he was quitting as head of the pro-independence Scottish National Party (SNP) and first minister of Scotland’s devolved government after a week of chaos triggered by his scrapping of a coalition agreement with Scotland’s Greens.
He then failed to secure enough support to survive a vote of no confidence which had been expected later this week.
“I’ve concluded that repairing our relationship across the political divide can only be done with someone else at the helm,” Yousaf said as he resigned little over a year after he replaced Nicola Sturgeon as first minister and SNP leader.
He said he would continue until a successor was chosen in an SNP leadership contest.
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The party is losing popular support after 17 years of heading the Scottish government, following a funding scandal and the resignation of Sturgeon as leader last year.