Labour looking for coalition as exit polls predict a hung parliament

London, May 7 (ANI): Britain might be heading for its first hung parliament in 36 years if exit poll predictions are to be gone by.

As the election counting begins in a closely contested general election, the Conservatives are struggling to obtain necessary battleground gains to claim power outright, despite some considerable swings.

Nevertheless, the Tories seemed optimistic about the election outcome believing that winds of change are sweeping through Britain with the Labour Party heading for a possible defeat for the first time in thirteen years.

The Sky News/BBC/ITN poll expects the Conservatives to win 305 seats, with Labour on 255 and the Lib Dems on 61.

According to Sky News, the result would see David Cameron's party fall short of the 326 MPs needed for an overall majority by 21 seats.

Earlier, a Tory spokesman said the projected result was a "decisive rejection of Labour" and enough for the Conservatives to form a minority government.

After sweeping to victory in his Witney constituency, Mr Cameron said, "We have to wait for the full results, but it is clear the Labour government has lost its mandate to govern this country."

But if the exit poll prediction is realised, it would present Labour with enough seats to align with Nick Clegg's party to form an administration.

Foreign Secretary David Miliband told Sky News dismissed Tory claims to office and indicated that a Lib-Lab pact was likely.

"If no party has a majority in the House of Commons, no party has a moral right to a monopoly of power," he said.

Business Secretary Peter Mandelson said early results were proof "people are not flying into the arms of the Tories".

Meanwhile, the projected figure of 61 seats is a huge setback for the Lib Dems after such a buoyant election campaign.

Lib Dem Economics spokesperson Vince Cable deemed the exit poll a "strange result" amid disbelief from party activists.

Sky News business reports that the fluctuations of voting patterns have had a significant effect on the British markets with the pound registering a slight depreciation, in the minutes after the exit poll was published the pound slipped by around one cent against the dollar. (ANI)