Britain's Conservative Party and Liberal Democrats have joined forces to create the country's first coalition government since World War II.
New Prime Minister David Cameron of the Conservative Party and now Deputy Prime Minister Nick Clegg of the Liberal Democrats said Wednesday, they will set aside policy differences to tackle Britain's economic issues.
Cameron wants to begin immediate spending cuts to tackle the country's $236 billion deficit.
Gordon Brown announced his resignation as prime minister Wednesday, after his Labour Party posted less than favorable results in the May 6 election.
Brown was hoping to form an agreement with the Conservative Party on joint leadership, however, Cameron made the final decision to side with Liberal Democrats on the deal.
Meanwhile Wednesday, Former Foreign Minister David Miliband announced his bid to take over the Labour Party.
"I believe I can lead Labour to rebuild itself as the great reforming champion of social and economic change in this country," he said.
Before Brown was ousted, the Labour Party had led Britain for 13 years.