LONDON (

TheStreet

) -- Gordon Brown's resignation as U.K Prime Minister today ushers in the country's first Conservative government in 13 years, ending the political stalemate that followed last week's election.

With no party gaining the overall majority needed to create a government, the Conservatives are set to form a deal with the Liberal Democrats, effectively removing Gordon Brown from Downing Street. Brown's Labour party won 258 parliamentary seats in last week's election, compared to the Conservatives' 306 and the Liberal Democrats' 57.

Gordon Brown

During an emotional farewell in front of number 10 Downing Street earlier today, Brown explained that he was resigning, paving the way for Conservative leader David Cameron to assume power.

"It was a privilege to serve," said Brown, who also paid tribute to Britain's military. "I will always admire the courage that I have seen in our armed forces -- our troops represent all that is best in our country."

Brown, flanked by his wife Sarah, ended by saying "thank you and goodbye," before walking out of Downing Street with his two small sons.

David Cameron is at Buckingham Palace to accept the Queen's invitation to form a Government, according to the

BBC

.

With Britain's budget deficit expected to surpass that of

Greece

, the U.K. election has been played out against a backdrop of growing economic upheaval.

All three parties acknowledged the importance of tackling the U.K.'s crippling 167 billion pound ($252.1 billion) budget deficit, with the Conservatives adopting the most aggressive approach. Cameron has vowed to attack public spending this year.

-- Reported by James Rogers in New York

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