I don't think anyone is surprised by this. There is still a slim chance the conservatives can gain a majority, but it is looking slimmer all the time. However, Labour and the LibDems will not have enough combined seats to form a majority either. Small parties can have an important role unless the exit polls are significantly wrong.London – Britain faces the prospect of days of political turmoil at a time of major economic challenges after UK election results, based on exit polls, suggested that no party will emerge with overall control of parliament.
A poll sponsored by the BBC and other broadcasters suggested that the opposition Conservative Party would win 307 seats - falling short by 19 seats in its bid to win an outright majority. While exit polls have been fairly accurate in the last three UK elections, the 1992 exit poll predicted a hung parliament but the final results delivered a clear 21 seat majority for the Labour Party.
Some reports of not enough ballots in some places and others where people were still in line when 10pm was reached (closing time). According to the head of the electoral commission, if you are in line and have not received a ballot paper yet at 10pm, you are NOT permitted to vote. While this is pretty crappy (in most -- if not all -- U.S. jurisdictions, you are permitted to vote if you are in line at poll closing time) this IS the British law, and 10pm is a very late closing time.
It will now be interesting to see what kind of horsetrading goes on. Will the Conservatives be able to swing a deal with the LibDems? Will Labor and the LibDems try to form a very unstable minority government? Where will the minor parties, especially ultra-nationalist parties in Northern Ireland, Wales, and Scotland do? The next few days should be quite interesting indeed.