Deal to save Britain

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The Tories were left 20 seats short of a majority as the final election results came in yesterday, casting Nick Clegg into the role of kingmaker despite the Liberal Democrats losing five seats in a deeply disappointing performance.

The two men spoke last night and agreed to further talks after Mr Cameron made a "big, open and comprehensive offer" which left the door open to a coalition government – with Cabinet jobs for senior Liberal Democrats – or a less formal agreement allowing the Tories to rule as a minority government.

But with Mr Clegg meeting his MPs today, Mr Brown also made a direct pitch for the Liberal Democrats to strike a deal with him by calling for "far-reaching" political reforms including a new voting system, a key Liberal Democrat demand.

The race to secure enough support to form a government came after the election produced the country's first hung Parliament since 1974 despite the Tories making a string of gains across Yorkshire at the expense of both Labour – including ousting Communities Minister Shahid Malik in Dewsbury – and the Liberal Democrats.

The Conservatives ended up as the biggest party, winning 306 seats – up 97 – with Labour losing 91 seats to end on 258, leaving both parties short of the 326 needed to form a majority.

That prompted both parties to make overtures to the Liberal Democrats, who ended up on 57 seats, with Mr Clegg saying the Tories had the "first right" to seek to form a government.

Mr Cameron said: "The best thing for Britain now is a new government that works together in that national interest and I hope with all my heart that is something that we can achieve."

He said he was "incredibly proud" of the party's achievements – winning 10.7 million votes, two million more than Labour – but added that the party had to accept it had failed to win an outright majority.

"Britain voted for change, but it also voted for a new politics. It did not vote for party political bickering, grandstanding and point-scoring," he said. "Our country's problems are too serious, they are too urgent for that. So we must all rise to this occasion, we must show leadership."

Mr Cameron said the party would either seek a "confidence and supply" agreement – getting the Lib Dems' backing to allow a minority Tory government to continue in office – or a "stronger, more stable, more collaborative government" which could go as far as a formal coalition.

"I want to make a big, open and comprehensive offer to the Liberal Democrats," he said. "I want us to work together in tackling our country's big and urgent problems, the debt crisis, our deep social problems and our broken political system."

Mr Cameron – conscious he needs to keep his own MPs on side – made it clear he would not negotiate on Tory immigration, defence and European policies but was willing to "give ground" on shared interests such as education funding, green economic policies, tax reforms and scrapping ID cards.

The most likely sticking point will be Liberal Democrat demands for proportional representation – which the Tories oppose – and whether Mr Cameron's offer of an all-party committee of inquiry on political and electoral reform is enough to satisfy the Lib Dems.

Mr Cameron called for a quick resolution and spoke to Mr Clegg on the phone yesterday before officials from both parties met last night.

Mr Clegg will have to get the party's backing for any deal, but he will also have to weigh up Mr Brown's offer of talks on economic and political reform.

If the Lib Dem leader decides to back the Tories, Mr Brown would be forced to quit, allowing Mr Cameron to become Prime Minister. If he backs Labour, Mr Brown would still need the support of minority parties such as Scottish and Welsh nationalists to allow him to stay in office.

Former Shadow Home Secretary David Davis, MP for Haltemprice and Howden, said: "It is clearly in the national interest that Mr Clegg and his party accepts this proposal."

TORY LEADER'S PITCH TO CLEGG

Common ground:

n School finance: Both parties want a pupil premium, targeting funding on low-achieving pupils from poor backgrounds.

n Low-carbon economy: Creating green jobs is a major plank of Lib Dem manifesto and part of Tory plans.

n Tax reform: Cameron willing to talk over how to finance scrapping of Labour's national insurance increase.

n Scrapping ID cards: Both parties are already committed to this.

n Reform of electoral system: Lib Dems want proportional representation, but Cameron will offer an all-party committee of inquiry.

Non-negotiable:

n No more powers to the eu: Tory Euroscepticism will not be watered down.

n No softening of Tory approach to immigration: Lib Dems will have to drop idea of amnesty for illegals.

n Country's defences must be kept strong: Cameron not prepared to back down on Trident.