Britain's First Coalition Government Takes Shape

Prime Minister Gordon Brown's resignation on Tuesday paved the way for David Cameron's Conservative Party to form a coalition government with the Liberal Democrats, ending 13 years of Labour rule. This historic alliance, Britain's first since World War II, has been officially recognized by Queen Elizabeth II. Amidst the uncertainty following the May 6 UK election, where the Tories won without an absolute majority, Nick Clegg's Liberal Democrats chose to align with the Conservatives over Labour, despite Labour's dismal performance, their worst in nearly 70 years.

Key Takeaways:

• The Conservative-Liberal coalition government is the first of its kind in the UK since the end of World War II, replacing 13 years of Labour rule.
• Prime Minister David Cameron has stressed his intention to form a "proper and real coalition" with the Liberal Democrats, focusing on providing a strong and decisive government.
• The biggest challenge facing the new government is the UK's deficit, which is forecast to be the largest in the EU by the end of the year, with a debt exceeding one trillion pounds.
• The two parties have reportedly come close on key issues, including the timing of cuts to tackle the deficit, with both advocating for a significant reduction in public spending.
• Conservative and Liberal Democrat plans to increase the threshold for inheritance taxes and to recognize marriage within the tax system have been put on hold.
• Areas where the two parties may experience disagreement include immigration and European integration, although significant EU issues are unlikely to arise in the short term.

Statistics:

• The UK's deficit is forecast to be the largest in the EU by the end of the year.
• The UK's national debt has surpassed one trillion pounds.
• 13 years of Labour rule have come to an end with the formation of the Conservative-Liberal coalition government.
• The May 6 UK election resulted in the Conservatives winning without an absolute majority.