What happens in a hung Parliament?
The previous government might remain in position whilst there is a period of negotiation to build a coalition, or they might decide to try and govern with a minority of Members of Parliament.
If the incumbent government is unable to command a majority and decides to resign, the leader of the largest opposition party may be invited to form a government and may do so either as a minority or in coalition with another party or parties.
Does the party with the most seats form a Government?
In order to form a Government, a party must be able to command a majority in the House of Commons on votes of confidence and supply. This majority can include support from other political parties, whether or not there is a formal coalition arrangement.
In a situation of no overall control the Government in power before the General Election gets the first chance at creating a government. If they cannot do so, the Prime Minister will resign.
Does the Prime Minister have to resign?
The Prime Minister only has to resign if it is clear that they cannot command a majority of the House of Commons on votes of confidence or supply. This would be the case if the incumbent government fails to make a deal with one or more of the other parties, or if they lose a confidence motion in the House of Commons. The first parliamentary test would be the vote on any amendment to the Queen’s Speech