Brown clings on as horse-trading begins

In a statement issued by 10 Downing Street, Mr Brown left no doubt that he is not intending to step down as Prime Minister as a result of Labour losing its majority in Parliament in yesterday's election.

Mr Brown said he had "a duty as Prime Minister to take all steps to ensure Britain has a strong, stable and principled government".

Last night's election delivered a hung Parliament for the first time since 1974, with Conservatives the largest single party but unable to form an outright majority without the support of other parties.

The result makes Liberal Democrat leader Nick Clegg the possible "kingmaker", despite a deeply disappointing night at the polls.

A senior Lib Dem source indicated that Mr Clegg would speak to Tories first about a possible deal, saying that the party which won "the most seats and the most votes" would have the "moral right" to seek to form a government, either on its own or in coalition.

In his statement, Mr Brown said: "The election results are likely to show there is no clear majority for any single party.

"As I said last night, it is my duty as Prime Minister to take all steps to ensure Britain has a strong, stable and principled government.

"This is, of course, chiefly a task for politicians and - in time - for Parliament.

"But to facilitate this process and consistent with the conventions set out in the draft Cabinet Manual, I have asked the Cabinet Secretary to arrange for the civil service to provide support on request to parties engaged in discussions on the formation of government."