UK coalition government sets to work

London, May 12, 2010 (SANS Correspondent): 

New UK Prime Minister David Cameron is beginning to shape his government, after the Conservatives agreed to form a historic coalition with the Lib Dems. Mr Cameron, 43, was installed as PM on a dramatic day that saw Lib Dem leader Nick Clegg announced as his deputy.Mr Clegg has arrived at 10 Downing Street where he and Mr Cameron shook hands and waved to photographers.

Four other Lib Dems will take cabinet posts in what is the first coalition government in the UK for 70 years.Mr Cameron vowed to set aside party differences and Mr Clegg urged doubting Lib Dem voters to "keep faith with us".The coalition is the first time the Conservatives and Liberal Democrats have had a power-sharing deal at Westminster and the first coalition in the UK of any type since the Second World War. 

Brown resignation:

Mr Cameron's arrival in Downing Street marks the end of 13 years of Labour rule.

The Tory leader, who is six months younger than Tony Blair was when he entered Downing Street in 1997, is the youngest prime minister since 1812 and the first Old Etonian to hold the office since the early 1960s.

The Conservatives won the most seats in last week's general election, but not enough to secure an overall Commons majority, resulting in a hung Parliament. Following days of talks between the Tories and Lib Dems - and also the Lib Dems and Labour - on forming a new government, a deal was reached on Tuesday that resulted in Labour Prime Minister Gordon Brown resigning.

Mr Cameron has begun appointing his first cabinet, with the Tories' George Osborne as Chancellor, William Hague as Foreign Secretary, Liam Fox as Defence Secretary and Andrew Lansley as Health Secretary.

Mr Clegg's chief of staff, Danny Alexander, who was part of the party's negotiating team, is to be Scottish Secretary, the BBC understands. Lib Dem Treasury spokesman Vince Cable has been given responsibility for "business and banks" but it is not known if his title will be chief secretary to the Treasury, a senior Lib Dem source said.There are expected to be about 20 Lib Dems in government jobs in total.

Meanwhile, details have been emerging from Conservative sources about the new government's programme, including:

• There will be a "significant acceleration" of efforts to reduce the budget deficit - including £6bn of spending reductions this year. An emergency Budget will take place within 50 days
• Plans for five-year, fixed-term parliaments, meaning the next election would not take place until May 2015
• The Lib Dems have agreed to drop plans for a "mansion tax" on properties costing more than £2m, while the Conservatives have ditched their pledge to raise the inheritance tax threshold to £1m
• The new administration will scrap part of Labour's planned rise in National Insurance and will work towards raising income tax thresholds for lower earners
• A pledge to have a referendum on any further transfer of powers to the EU and a commitment from the Lib Dems not to adopt the euro for the lifetime of the next Parliament
• The Lib Dems have agreed to Tory proposals for a cap on non-EU migration
• The Conservatives will recognise marriage in the tax system, but Lib Dems will abstain in Commons vote
• The Lib Dems will drop opposition to a replacement for Britain's Trident nuclear missiles but the programme will be scrutinised for value for money
• There will be a referendum on moving to the Alternative Vote system and enhanced "pupil premium" for deprived children as Lib Dems demanded

The Lib Dem parliamentary party and its federal executive endorsed the coalition agreement by the required three-quarters majority shortly after midnight.

Mr Clegg said: "I hope this is the start of the new politics I have always believed in - diverse, plural, where politicians of different persuasions come together, overcome their differences in order to deliver good government for the sake of the whole country." 

He acknowledged there would be "glitches" and acknowledged Lib Dem voters would have "many questions, maybe many doubts".

"But I want to assure you that I wouldn't have entered into this agreement unless I was genuinely convinced that it offers a unique opportunity to deliver the kind of changes you and I believe in."

Mr Hague told BBC Radio 4's Today programme the two parties had dealt with an "unprecedented situation" in a "great atmosphere" and said the coalition amounted to "an important realignment of politics with a practical programme".

Asked whether it could provide stable government, he said it had required some "new ideas" - including a five year fixed term parliament.

"We have done everything possible to lock ourselves together to avoid the dangers of instability and haggling that are of course present in any hung parliament."