Theresa May has managed to acquire a deal with the Democratic Unionists that will allow her to form a government.
The prime minister is expected to see the Queen just after midday to confirm that a deal is in place.
The deal follows extensive talks with the DUP.
DUP figures insist that their relationship with May’s team has been close since she became prime minister 11 months ago
Labour has defied expectations by taking dozens of seats in England and increasing its share of the vote by 9.6 per cent, as the UK was left with a hung Parliament.
The Conservatives failed to make the widely predicted gains in Labour heartlands or benefit from the collapse of support for UKIP.
The Liberal Democrats gained five seats in England, but former deputy prime minister Nick Clegg lost his.
With 647 of 650 seats declared, the Tories had 316 seats – 10 short of the figure needed to win outright – with Labour on 261, the SNP on 35 and Liberal Democrats on 12.
A high turnout among young voters boosted Labour’s vote share, the National Union of Students said.
Theresa May will visit Buckingham Palace at 12:30 BST to seek permission to form a UK government, despite losing her Commons majority
The Conservatives are likely to be bolstered by Northern Ireland’s Democratic Unionist Party (DUP) but if they form a minority government, votes in the Commons will be tight.
An exit poll had previously suggested the Conservatives would remain the largest party but fall short of an absolute majority.