Grip on power: Brown won't turn his back on the premiership 'for nation's sake'

Mr Brown has been facing pressure to quit as Prime Minister in the wake of the Conservatives winning more votes and more seats in the General Election, but insisted he would not yet walk away because he wanted to resolve the situation "for the good of the country".

In a statement in Downing Street yesterday, he admitted that David Cameron and Nick Clegg were entitled to take "as much time as they feel necessary" with their discussions which could them strike a deal to make the Tory leader Prime Minister.

But Mr Brown sought to convince the Liberal Democrat leader to make a deal with him instead as he stressed common ground between the parties and offered voting reform as an incentive to come to the table and keep him – and Labour – in power.

"For my part, I should make clear that I would be willing to see any of the party leaders," said Mr Brown. "Clearly should the discussions between Mr Cameron and Mr Clegg come to nothing, then I would of course be prepared to discuss with Mr Clegg the areas where there may be some measure of agreement between our two parties.

"There are two areas in particular where such discussion would be likely to focus. The first is the plan to ensure continuing economic stability, where there is substantial common ground, and the plan to carry through far-reaching political reforms, including changes to the voting system.

"Both of us have made clear our commitment to this in our manifestos and the electorate has sent us a very strong message which must be heard.

"My view is clear; there needs to be immediate legislation on this to begin to restore the public trust in politics and to improve Parliament's standing and reputation, a fairer voting system is central.

"And I believe that you the British people should be able to decide in a referendum what the system should be."

Although Mr Brown, as the current Prime Minister, constitutionally has first chance to form a government, Mr Clegg made clear yesterday that the Tory leader had the strongest case to prove he could govern in the national interest and a weekend of frantic negotiations is expected.

Refusing to declare that Labour had lost the election, Mr Brown said the failure of any party to win a majority – resulting in the first hung parliament since 1974 – had left the political system "in a position unknown to this generation of political leaders".

Making his statement in the middle of Downing Street yesterday afternoon, in front of a horde of journalists and camera crews, Mr Brown said he had a "constitutional duty" to try to end the political deadlock "for the good of the country".

"What we have seen are no ordinary election results," he said. "People have been talking for some time, inside and outside Government, about the possibility of a hung Parliament.

"That possibility has now become very real and pressing. The question for all the political parties now is whether a Parliamentary majority can be established that seems to reflect what you the British people have just told us."

Mr Brown said he understood and "completely respected" Mr Clegg's decision to first make contract with Mr Cameron, and said the other parties could have any civil service support they need as they seek to reach agreement that would provide a stable government.

He recognised that the public "do not like the uncertainty or want it to be prolonged", but said it was the responsibility of the party leaders to make the situation work "for the national good".

Earlier Mr Brown had ordered the head of the civil service, Cabinet Secretary Sir Gus O,'Donnell, to provide official support for discussions between the parties as he made clear he had no intention of stepping down immediately in the wake of a bad night for Labour that saw them lose more than 90 seats.

Business Secretary Lord Mandelson, likely to be a key Labour figure as negotiations take place over the coming days, said: "The Prime Minister's duty is to stay at his post, to continue doing his job and not resign until it is clear who the Queen should call as an alternative to form a new government, should Mr Brown not be able to do so.

"The Prime Minister can't just resign and leave a vacuum for the Queen to deal with."

But Rotherham MP Denis MacShane, a former Europe Minister, urged all three party leaders to take their time before rushing to a deal.

"The nation's spoken and quite clearly doesn't have confidence in any single party to run the country," he said.

"We should digest that message, take a weekend off and I think the nation should be involved in this debate. It shouldn't be decided just by backroom advisers and three exhausted leaders all of whom have suffered defeats."

Major urges dignity in wake of defeat

Gordon Brown is "beginning to look a little undignified" by continuing to cling to the keys of Downing Street despite winning 48 fewer seats than David Cameron, says former Prime Minister Sir John Major.

He urged Mr Brown to follow his example when he lost the election in 1997 – albeit to a Labour landslide rather than a hung parliament – and announce he was quitting to watch cricket.

Sir John, who said Britain faced great problems, added: "I honestly don't believe a Government which has just lost 100 seats and got less

than 30 per cent of the vote would really be appropriate to deal with these problems."

He urged the Liberal Democrats to consider Mr Cameron's plea to help him govern, saying the offer was "a very serious one"and praising Mr Clegg for being "very graceful" for saying that the Tories should have the first chance to show they could govern in the national interest.

He added: "My primary concern is that we don't have a government that would be blown away by a single puff of wind.

"That is in nobody's interest, certainly not in the interests of the country. So if it meant a rather more formal relationship perhaps with one or two senior Liberal Democrats in the Cabinet then I for one would not object to that."

He said it would be a price worth paying for stability to deal with the country's economic problems.