Despite winning extra seats the Conservative government have not made enough gains to have an overall majority.

Business leaders are concerned that the hung parliament will lead to economic uncertainty - the pound has already suffered as business confidence wavers.

Under the rules of Britain's constitution, the sitting prime minister in a hung parliament has the right to make the first attempt at forming a ruling coalition.

Conservative leader David Cameron is to make a statement setting out how he will seek to form a government later on this afternoon.

"Companies across the UK have expressed significant concerns about how a hung parliament could affect the decisive action needed to cut the deficit and improve the business environment," said Adam Marshall, Director of Policy at the British Chambers of Commerce.

"The electorate has spoken - and opted for a hung parliament. But the business community has also spoken - and expects the parties to put political horse-trading to one side and put the UK economy at the heart of their thinking."