PM Cameron wins British election

Prime Minister David Cameron won a stunning election victory in Britain, overturning poll predictions that the vote would be the closest in decades to sweep easily into office for another five years, with his Labour opponents in tatters.

The sterling currency, bonds and shares surged on a result that reversed expectations of an inconclusive "hung parliament" in which Cameron would have had to jockey for power with Labour rival Ed Miliband.

Instead, Cameron was due to meet Queen Elizabeth before noon to accept a swift mandate to form a government. The royal standard was raised at Buckingham Palace to signal the queen was there awaiting him.

"This is the sweetest victory of all," he told enthusiastic supporters at party headquarters. "The real reason to celebrate tonight, the real reason to be proud, the real reason to be excited is we are going to get the opportunity to serve our country again."

Miliband was expected to step down as Labour leader. He said on Twitter: "The responsibility for the result is mine alone."

Cameron's victory also means Britain will face a vote which he has promised on continued membership in the EU. He says he wants to stay in the bloc, but only if he can renegotiate Britain's relationship with Brussels. 

Reuters