Story updated with information on Nick Clegg.

LONDON ( TheStreet) -- Conservative leader David Cameron is the U.K.'s new prime minister, following the resignation of Gordon Brown.

Cameron's appointment finally ends the political gridlock which followed the U.K. election last week and ushers in the country's first Conservative government in more than a decade.
David Cameron
David Cameron

The Conservative leader has formed a coalition with the centrist Liberal Democrats after his party failed to win an overall majority in the election. Cameron, who was formally invited to form a government by the Queen earlier today, saw his center-right Conservatives gain the most votes but fall short of the 326 needed for a Parliamentary majority.

Speaking outside Number 10 Downing Street, Cameron vowed to work closely with Liberal leader Nick Clegg. The two politicians, he said, would "put aside party differences and work hard for the common good and the national interest," according to the BBC.

Sky News reports that Nick Clegg will become Britain's deputy prime minister, with Conservative politician George Osborne becoming the U.K.'s Chancellor of the Exchequer.

The center-left Labour Party has held the U.K.'s political reins since 1997 when Tony Blair swept to power. Gordon Brown, the former Chancellor of the Exchequer, succeeded Blair as prime minister in 2007, but was unable to convince voters that he could turn the U.K.'s fortunes around.

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 have 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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