Britain has a new government: it's a coalition between the Tories (cue spitting) and the Lib Dems. The latter had been in talks with Labour about forming a coalition (along with a number of smaller parties, such as the Greens, Plaid Cymru and possibly the Scottish National Party), but the deal apparently was scuppered by elements of the Labour Party deciding to veto it (presulably calculating that, during the upcoming years of austerity, they'd be better served being in opposition, and by encouraging a myth of the Lib Dems' perfidious betrayal of the progressive cause, they'd claim the left-wing vote for themselves come next election). Anyway, the Lib Dems get a few cabinet seats, and a referendum on replacing the grotesquely unfair first-past-the-post voting system with the somewhat less unfair alternative vote system, as used in Australia. (Proportional Representation is out of the question in the lower house, though there is talk about a fully elected House of Lords, so we may possibly get proportional representation there; again, like in Australia.)
Interestingly enough, Charlie Stross (who really dislikes the Tories) is oddly sanguine about the coalition:
All in all ...We've got a government that, for the first time since the 1930s, more than 50% of the voters voted for. There are a lot of positive policies here, on civil liberties and constitutional reform. There are some stinkers, but fewer than I expected. There is also a systemic weakness, insofar as the extreme fringe of either of the coalition parties have the ability to take down the government. So we're probably going to see lots of compromises. In particular, I'm hoping the Liberal Democrats act as an effective brake on the Conservatives (who I fear are capable of behaving much like Stephen Harper's Canadian tories if governing on their own).