BRITAIN’S coalition government was dealing its first blow after David Laws, a high-profile finance minister, resigned over expenses revelations that also exposed his homosexuality.

The Tory-Liberal Democrat coalition suffered a major blow tonight as David Laws was forced to resign over expenses abuse allegations.

The new coalition government in the UK was engulfed in its first crisis today after Chief Secretary to the Treasury David Laws was forced to apologise over parliamentary expenses running into tens of thousands of pounds.

New UK Chancellor of the Exchequer George Osborne unveiled plans for an immediate £6.25bn (€7.27bn) cut in “wasteful” public spending today – insisting the Government was “getting on with the job” of tackling the deficit.

British Chancellor George Osborne today announced that he will deliver his first emergency Budget on June 22, exactly six weeks after the new coalition Government took office.

DAVID Cameron hailed “a historic and seismic shift” in Britain’s political landscape yesterday as he launched the country’s first coalition government since the Second World War.

David Cameron will begin work today on putting together his historic new coalition government with the Liberal Democrats.

Liberal Democrat leader and “kingmaker” Nick Clegg will become Deputy Prime Minister and join four of his MPs in the UK’s first coalition Cabinet for 65 years.

Negotiations between the UK political parties over the shape of the next government were reaching a heightened pitch today, with some sources expecting a conclusion before the end of the day.

Gordon Brown tonight announced he will resign as Labour leader – but offered to stay on as British Prime Minister in a potential power-sharing government with the Liberal Democrats until his party has chosen a successor.

Liberal Democrat MPs today called for “clarification” of a possible deal with the Tories, including on the key issue of electoral reform.

Negotiators for the Conservatives and Liberal Democrats will meet today for a crunch meeting to spell out their demands for a deal which could see the parties form a coalition government in Britain.

Tory leader David Cameron and Liberal Democrat leader Nick Clegg held face-to-face talks tonight as they continued their attempts to thrash out a power-sharing deal.

Liberal Democrat MPs today endorsed leader Nick Clegg’s decision to enter talks with the Conservatives over possible co-operation in forming a new government.

British Liberal Democrat Party leader Nick Clegg today said he would fight for "fundamental" reform of Britain's electoral system in talks with other parties on the shape of the future government, following Thursday's inconclusive general election.

Nick Clegg will today address British Liberal Democrat MPs in an attempt to gain their backing for his negotiating strategy as he embarks on discussions with the Conservatives that could force Gordon Brown out of No 10.

Charles Kennedy bowed to the inevitable today and resigned as Liberal Democrat leader, two days after admitting a drink problem.