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UK elections 2017: In Hung House, Theresa May will lead minority government

10 June 2017

"What the country needs more than ever is certainty", May said after the shock outcome of Thursday's vote.

"As I said many times during the campaign, I had wanted to achieve a larger majority, but that was not the result we secured", May, who had previously pledged not to hold an early election, said on Friday.

As May announced forming a minority government with the support of the small Northern Irish Democratic Unionist Party (DUP), allowing her to cling to her position, a resurgent Labour Party celebrated as it outperformed expectations following a successful campaign led by Jeremy Corbyn.

"I will now form a government", May said in a speech outside her official residence at No. 10 Downing Street after meeting with Queen Elizabeth at Buckingham Palace on Friday.

The PM added Brexit negotiations will continue as per the same timetable as before and that she will try to strike a "Brexit deal that works for everyone in this country".

The former minister of finance George Osborne, who stepped aside after the election informed reporters that the results were disastrous for his party.

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Corbyn's newly energized Labour Party officially backs Brexit - since voters endorsed it in a referendum past year - but many important figures in the party advocate a much "softer" Brexit, and their views now may now carry sway. EU Commissioner Guenther Oettinger said that "with a weak negotiating partner, there's the danger that the negotiations will go badly for both sides".

Talk in Britain that a different ruling coalition could seek a "softer" Brexit than May has proposed, possibly seeking to remain in the single market, is also problematic for the EU. But "we know when they must end".

Having lost a dozen seats in Parliament and with calls for her to resign, May was defiant in addressing the nation and committing herself to getting the best Brexit deal.

At the beginning of the campaign it had been assumed Mr Corbyn was a lame duck, who would be forced to quit as leader following a humiliating defeat by the Tories.

"It serves her right". London remains an important global financial centre. This translated into 318 seats for the Conservatives (a net loss of 12)-and a loss of the party's overall majority of 330-compared to 261 seats for Labour (a net gain of 29).

"At the start of the election campaign, she was seen as a safe pair of hands". That is why sterling fell 2% when the exit poll was released at 10pm on election night.

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Where the center-right Conservatives had hoped to take seats from the main opposition Labour Party, the reverse happened.

"The reckless Tory pursuit of a "hard Brexit" must now be abandoned", the Scottish National Party leader told a press conference.

German conservative Markus Ferber, an European Union lawmaker involved in discussions on access to European Union markets for Britain's financial sector, was scathing.

Seeking to capitalise on sky-high popularity ratings, she called the election a few weeks later, urging voters to give her a stronger mandate.

"It creates another layer of uncertainty ahead of the Brexit negotiations", said Craig Erlam, senior market analyst at OANDA currency traders. It's hard to predict how they'll react, he says.

Barely a month ago, the centre-left party seemed doomed to lose the election, plagued by internal divisions over its direction under veteran socialist Corbyn. It is May, not Corbyn, whose career is in tatters.

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