GENERAL ELECTION 2015: David Cameron heading back to 10 Downing Street

The resignation comes shortly after Nick Clegg also stepped down as Liberal Democrat leader after a disastrous election night for his party, which won only eight seats – down from 57 in 2010.

Earlier Nigel Farage resigned as Ukip leader after finishing second in Thanet South.

Speculation is now beginning to mount that Liberal Democrat Tim Farron, who retained his Westmorland and Lonsdale seat with a reduced majority, could take over as the party’s leader.

The Liberal Democrats have only eight MPs, including Mr Clegg, and Mr Farron is one of the most senior of those who remain.

Tory leader David Cameron is now preparing to visit the Queen at Buckingham Palace to confirm his second term as Prime Minister after a dramatic night which saw the Scottish National Party sweep away Labour north of the border while the Liberal Democrats suffered savage losses.

The result spelt the end of Mr Miliband's hopes of entering No 10, while Mr Clegg saw his tally of Lib Dem MPs reduced to a rump of just eight.

The Labour leader wrote on his Twitter page: "The responsibility for the result is mine alone."

Ed Balls became the highest-profile casualty of a disastrous General Election performance for Labour, losing his seat to the Conservatives in a shock result by 422 votes.

He said the disappointment at his individual political demise was "as nothing compared to the sense of sorrow I have" at Labour's showing across the rest of the UK.

Ed Miliband came close to conceding defeat in a speech after holding his seat of Doncaster North, describing the election as "very disappointing and difficult" for Labour and saying that "the next government" would have a huge responsibility to hold the United Kingdom together.

Mr Farron was re-elected for a third term as Westmorland and Lonsdale MP. He polled 25,194 votes, a 51.5 per cent share of the vote, as his majority fell from 12,264 in 2010 to 8,949. Conservative Dr Ann Myatt polled 16,245 to come second.

At Barrow and Furness Labour’s John Woodcock won a second term as MP, calling it “the proudest moment of my working life". But he saw his previous majority of 5,028 slashed to just 795 in a closely fought battle that saw him gain 18,320 votes and Conservative Simon Fell 17, 525.

CONSERVATIVE Rory Stewart retained his Penrith and The Border seat with a massively increased majority. Mr Stewart, who first won the seat in 2010, polled 26,202 votes, which amounted to a 59.7 per cent share of the vote. His majority was 19,894 up from 11,241 in 2010 At Morecambe and Lunesdale, a seat Labour was hoping to win, Conservative David Morris won a second term in office after polling 19,691votes.

His nearest rival, Labour’s Amina Lone, got 15,101 votes, giving Mr Morris a majority of 4,590. Speaking to the Gazette, David Morris said he was 'delighted' with his win and was looking forward to further improving Morecambe and Lunesdale over the next five years.

The Conservatives' Julian Smith more than doubled his majority as he held the Skipton and Ripon seat. Mr Smith received 30,248 votes, 20,761 more than his nearest rival, Labour's Malcolm Birks, who received 9,487 votes. In 2010 Mr Smith's majority was 9,950.

Meanwhile, nationally, the Liberal Democrats suffered savage losses, with senior figures including Business Secretary Vince Cable, Energy Secretary Ed Davey and justice minister Simon Hughes ejected from the Commons by voters, although Nick Clegg held his seat in Sheffield Hallam.

An exit poll predicted the Conservatives would win 316 seats to Labour's 239, but the Conservatives have surpassed the 326 seats they need for an overall majority in the House of Commons.

As the SNP swept up one Labour stronghold after another - toppling the party's Scottish leader Jim Murphy and shadow foreign secretary Douglas Alexander and snatching the former constituency of ex-prime minister Gordon Brown - the party's former leader Alex Salmond said there had been an "electoral tsunami" north of the border.

Mr Salmond, who returned to Parliament as MP for Gordon, said: ''There's going to be a lion roaring tonight, a Scottish lion, and it's going to roar with a voice that no government of whatever political complexion is going to be able to ignore."

But the party was denied the clean sweep some had predicted north of the border, as the Liberal Democrats held Orkney and Shetland, Ian Murray held on to Edinburgh South for Labour, and David Mundell remained the only Tory MP in Scotland, holding on to Dumfriesshire, Clydesdale and Tweeddale.

There were signs of dissent in Labour ranks, with respected backbencher John Mann tweeting: "Can't say that Labour leadership weren't warned repeatedly - those who even bothered to meet, that is. Never hurts to listen."

Former home secretary David Blunkett urged the party not to retreat to a "bunker", saying: "We must not revert to the far left. We must not allow ourselves to turn inwards. We must try to heal the hurt that people will be feeling."

Mr Miliband said: "This has clearly been a very disappointing and difficult night for the Labour Party.

"I want to say to all the dedicated and decent colleagues in Scotland who have lost their seats that I am deeply sorry for what has happened. And I also want to say that the next government has a huge responsibility. It has a huge responsibility in facing the very difficult task of keeping our country together.

"Whatever party we come from, if we believe in the United Kingdom we should stand up for people in every part of our United Kingdom because I believe that what unites us is much, much more than what divides us."

There were some Conservative losses, including employment minister Esther McVey, who lost Wirral West to Labour by 417 votes. But Conservative chief whip Michael Gove said it appeared Mr Cameron had won "a very handsome victory".

Mr Gove described the exit poll figures as "an unprecedented vote of confidence in David Cameron's leadership" and said he would have "considerable authority" to "go forward with a secure and stable government in the national interest".

And London mayor Boris Johnson swept back into Parliament as MP for Uxbridge and South Ruislip, saying that voters had "decisively rejected the old-fashioned and outdated policies of division" represented by Mr Miliband.

The exit poll of 22,000 voters for BBC/ITN/Sky suggested Mr Cameron would be holding on to power by his fingertips, without the luxury of a stable coalition with a comfortable majority offered by his partnership with Liberal Democrats over the past five years.

But after Tories comfortably held the key Labour target of Nuneaton, exit poll supremo Professor John Curtice of Strathclyde University said: "In practice we now have to take seriously the possibility the Tories could get an overall majority."

High-profile casualties included Home Office minister Lynne Featherstone, women's minister Jo Swinson and whip Jenny Willott. Former leader Charles Kennedy left Parliament after 32 years, losing his seat of Ross, Skye and Lochaber to the SNP.

With a sharply-reduced presence on the green benches, the Lib Dems will have far less clout as a possible coalition partner.

Ukip gained its first seat in a general election, but its majority in Clacton was significantly reduced from the by-election last year when Tory defector Douglas Carswell became its first elected MP. It missed out on targets in Thurrock, Castle Point and Great Grimsby.