David Cameron is appointing his new Cabinet after becoming Prime Minister and the head of the country's first peacetime coalition since the 1930s.
On Wednesday morning, new Deputy Prime Minister Nick Clegg arrived at Downing Street and shook hands with the new PM before going inside to continue coalition talks and to dish out the top Government jobs.
A number of high profile Scots had already been handed top jobs, with Lib Dem Danny Alexander taking over as Secretary for Scotland and Scots Tory Liam Fox will take over in Defence.
Tory George Osborne will take over as Chancellor, William Hague will be Foreign Secretary, Andrew Lansley will be Health Secretary, and Iain Duncan Smith takes over at the Department for Work and Pensions.
Theresa May became the first female with a confirmed seat around the cabinet table, taking over as Home Secretary, while Ken Clarke looked very happy leaving No 10 following his appointment as Justice Secretary.
Vince Cable goes to the Treasury and takes responsibility for banks and business. He will be joined by Chief Secretary to the Treasury, Lib Dem David Laws.
Chris Huhne has been appointed Environment and Climate Change Secretary and Michael Gove, Schools Secretary.
Details of the deal between the Lib Dems and the Tories began to emerge within hours of Mr Cameron arriving at Downing Street.
His appointment followed five days of intense talks with the Liberal Democrats to reach a coalition deal, thought to contain compromises on both parties' tax plans as well as a pledge to hold a manifesto on electoral reform. The full details of the agreement will be published later on Wednesday, with the Lib Dems expected to pick up 20 Government positions.
Less than two hours before Mr Cameron arrived at Downing Street, Gordon Brown had resigned as Prime Minister and Labour leader with immediate effect, following the collapse of coalition talks between Labour and the Lib Dems.
The Conservatives then revealed they had reached a coalition deal, which was formally approved by Lib Dem MPs later on Tuesday night.
Looking ahead to the coalition, Mr Cameron said: "Nick Clegg and I are both political leaders who want to put aside party differences and work hard for the common good and for the national interest. I believe that is the best way to get the strong Government that we need, decisive Government that we need today.
"I came into politics because I love this country, I think its best days still lie ahead and I believe deeply in public service, and I think the service our country needs right now is to face up to our really big challenges, to confront our problems, to take difficult decisions, to lead people through those difficult decisions so that together we can reach better times ahead."
The Prime Minister went on: "One of the tasks that we clearly have is to rebuild trust in our political system.
"Yes, that's about cleaning up expenses, yes, that's about reforming parliament, and yes, it's about making sure people are in control and that the politicians are always their servants and never their masters. But I believe it's also something else - it's about being honest about what government can achieve.
"Real change is not what government can do on its own, real change is when everyone pulls together, comes together, works together, when we all exercise our responsibilities to ourselves, our families, to our communities and to others.
"And I want to build a more responsible society here in Britain, one where we don't just ask what are my entitlements but what are my responsibilities, one where we don't ask what am I just owed but more what can I give, and a guide for that society that those that can should and those who can't we will always help."
Downing Street is preparing to publish the full document setting out the agreement between the two parties later on Wednesday. David Cameron confirmed that some details will need to be hammered out over the coming fortnight, but that a number of compromises had been reached.
STV understands that both parties have compromised on their manifesto plans for taxation changes. The Liberal Democrats promise to increase the income tax threshold to £10,000 will be passed and will be paid for by a rise in Capital Gains tax. The Conservative plan to offer tax incentives to married couples is also in doubt, and the party has also dropped its plans for an increase in the inheritance tax threshold to £1 million in the lifetime of the new parliament.
The two parties policies vary widely on immigration, but they are thought to have reached a number of agreements. The Lib Dems will support a cap on immigration and will lose their plan to offer an amnesty to illegal immigrants already in Britain. The party's have also revealed they will ban the holding of children in immigration centres such as Dungavel.
A Conservative plan to allow independent schools to be funded with public cash has been passed, but will not apply in Scotland where education is devolved.
Meanwhile, the parties have also reached an agreement on the issue of electoral reform, the details of which are still to emerge. The deal is expected to include plans for a referendum on voting reform and the introduction of a five-year fixed-term for parliament. It has also been suggested the House of Lords will become an elected second house, with members appointed using proportional representation.
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