Public sector workers will have to wait for clarity on spending cuts as the UK prepares for a hung parliament.

At 6.20am, David Cameron’s Conservative Party was set to be the largest party in the House of Commons but without the 326 seats needed to form a clear majority. This leaves the potential for Labour to continue to govern, if it can get the support from the Liberal Democrats in a coalition.

Other options include the Conservatives forming a minority government.

A Sky News exit poll at 6am forecast the Conservatives would win 309 seats, the Labour Party would win 259, the Liberal Democrats would win 54, and other parties would win 28 seats.

Public sector bodies will only get clarity on the scale and speed of cuts to public spending when the make-up of the governing party is known, although this could take weeks to achieve.

More details on the 2010 election will follow later.

• Liberal Democrats to play key role on spending cuts
• Labour takes over 16 town halls
• The Coalition: our programme for government
• Labour takes control in urban local elections
• Tories to axe 750 school projects, says Labour