London , England ( CNN ) -- Conservative Party leader David Cameron was appointed as British prime minister on Tuesday following the resignation of Gordon Brown , whose Labour Party was defeated in Thursday 's general election . Cameron traveled to Buckingham Palace where he was invited to form a government by Queen Elizabeth . So what will happen in the near future ? When does David Cameron take office ? Cameron arrived at the prime minister 's official Downing Street residence early Wednesday morning to begin work on agreeing the final details of his coalition government with the Liberal Democrats . Brown left the building for the last time on Tuesday evening . Full election coverage . How will the next government work ? The Conservative Party won 306 seats in the election , which is 20 seats short of a parliamentary majority , so it needs the cooperation of other , smaller parties , especially on contentious legislation . On Tuesday the center-right party agreed a deal to govern in coalition with the centrist Liberal Democrats to form a `` strong and stable '' administration . This will give it a notional majority of 86 if all Conservative and Lib Dem MPs vote with the government . Who will be in the government ? Nick Clegg and other leading Liberal Democrats look to be the big winners from the coalition deal with Clegg appointed Deputy Prime Minister , although it remains unclear exactly what brief that role will entail . The Liberal Democrats are expected to hold five ministerial posts in the Cabinet . But the Conservatives hold on to two senior offices of state , with George Osborne named Chancellor of the Exchequer , or finance minister , and William Hague appointed foreign secretary . What is the agenda of the new government ? The government is expected to unveil an emergency budget within weeks as the UK continues to recover from the economic crisis . Cameron said reducing the huge budget deficit was his priority along with tackling the social problems that Britain faced . The Liberal Democrats favored delaying public spending cuts while the economic recovery remained fragile . But both parties have been forced to compromise on key policies in reaching a deal to work together . The Conservatives have pledged £6 billion ( $ 9 billion ) in spending cuts this year . They will also scrap a planned increase in National Insurance contributions -- a form of tax funding healthcare and welfare benefits -- paid by employers which they said would damage the economy . But the Liberal Democrats have achieved a concession that will see the personal tax threshold raised to £10,000 ( $ 15,000 ) -- a key manifesto pledge they say will benefit lower-paid workers . Liberal Democrat demands for electoral reform have been partially accommodated with the government pledging a referendum on moving to an `` Alternative Vote '' system . But the Lib Dems have dropped for now their opposition to the replacement of the UK 's Trident independent nuclear deterrent . What are the potential stumbling blocks ? The Conservatives and the Liberal Democrats have very different policies on Europe , the UK 's nuclear deterrent , immigration and , crucially , electoral reform . Will a coalition impede the workings of government and will it make it more difficult to get laws passed ? There is no reason why a coalition government should necessarily work any differently to one formed by a single party . The party leaders will need to agree on the government 's agenda , laid out in the Queen 's Speech later this month . How effective the government is in passing new laws depends on lawmakers in both parties of course . If Liberal Democrats are rebellious they will vote against the government , and if they bring it down , by forcing a no-confidence motion , they risk sparking another general election . Is a second general election likely ? Cameron has the right to call a new election at any time ; he may do so if he feels in a strong enough position and if he feels the Lib Dems are not allowing him to pursue his agenda . Who is the opposition ? The Labour Party is now in opposition along with other smaller parties , and its deputy leader Harriet Harman will be interim leader as well as leader of the opposition following Brown 's resignation as Labour leader earlier in the week . Do officials in Downing Street remain in their jobs ? Members of the Civil Service are non-partisan , and work with a government formed by any party . The civil servants thus remain in their posts , and help with the transition of the new government . How often does Britain have coalition governments ? They are very rare in British politics . The last time Britain had a hung parliament was in February 1974 , when Edward Heath 's Conservatives gained more votes but fewer seats in Parliament than Labour . Unable to form a deal with the Liberal Party , the Conservatives stayed on in a minority government , but found themselves back at the polls by October . The last coalition to rule the UK was formed in response to the crisis of World War II , with Conservative Winston Churchill leading an all-party administration between 1940 and 1945 .
Cameron leader Nick Clegg appointed as British prime minister . Nick Clegg said he would form coalition with Liberal Democrats . British leader Cameron named deputy prime minister .