The Conservatives have secured the 326 seats needed to form a majority government following a stunning election night which saw Labour hammered in Scotland by the SNP.
The Tories are forecast to win a total of 331 seats, compared to just 232 for Labour.
In Scotland the SNP won 56 of 59 seats, reducing Labour’s representation north of the border to a single MP.
Speaking outside Downing Street, Conservative leader David Cameron confirmed his party would now form a majority government and pledged to implement its entire manifesto.
He also promised greater devolution for Scotland, including increased tax powers, and said these changes will be implemented “as fast as I can”. Cameron said the reforms would make Scotland “the strongest devolved government in the western world”.
Labour leader Ed Miliband will resign on the back of the results, as will his Liberal Democrat counterpart Nick Clegg following a disastrous night for the party which saw them win just eight seats.
Ukip leader Nigel Farage has also announced his intention to quit after losing in Thanet South.
The election has seen a number of high profile scalps being claimed, include shadow chancellor Ed Balls losing to the Conservatives.
The FTSE soared in early trading, gaining 100 points, before falling slightly to 6992.89.
Sterling also jumped against the dollar and is now at $1.55.