Theresa May is forming a minority government - here's what that actually means

The Democratic Unionist Party (DUP) is open to supporting a minority government led by British Prime Minister Theresa May's Conservatives, the prime minister's office announced on Saturday.

In an indication of the unease within the party about the link-up with the DUP, Scottish Tory leader Ruth Davidson said she had demanded a "categoric assurance" from the Prime Minister that gay rights would not be affected by a deal.

Just over a week away from the formal start of Brexit negotiations, British Prime Minister Theresa May is scrambling to cobble together a new government in Westminster - and to maintain her own position in 10 Downing Street.

The Conservatives secured 318 seats in the 650-seat House of Commons - just short of the 326 seats needed to control a majority.

I think, you know, we see this election extremely effective Labour Party campaign, which has not allowed the Labour Party to win the election outright but has enabled it to deny the conservatives and Prime Minister May a parliamentary majority.

Newspapers said foreign minister Boris Johnson and other leading party members were weighing leadership challenges.

But Mr Corbyn said: "I don't think Theresa May and this government have any credibility. Let's get on with the job", he said.

Downing Street backtracked, saying she had "discussed finalizing" a deal in the coming week.

He said the two parties did not agree on everything but that the Tories were looking for DUP support on "big issues" such as the economy and security.

He said: "My phone is full of texts from lots and lots of people from right across the party".

"I asked for a categoric assurance that if any deal or scoping deal was done with the DUP there would be absolutely no rescission of LGBTI rights in the rest of the United Kingdom, in Great Britain, and that we would use any influence that we had to advance LGBTI rights in Northern Ireland", said the MP, who is a lesbian.

"We will welcome any such deal being agreed, as it will provide the stability and certainty the whole country requires as we embark on Brexit and beyond".

"I think its quite possible there'll be an election later this year or early next year, and that might be a good thing, because we can not go on with a period of great instability", he told the BBC's Andrew Marr on Sunday June 11).

He said there was a "possibility" of voting down the Queen's Speech and Labour were going to "push all the way" to achieve that.

The futures market also showed a negative bias on the pound, with US positioning data showing investors increasing their "short" positions on sterling in the week upto last Tuesday, before Britain went to the polling stations.

The political turmoil comes a week before Britain is due to start negotiating the terms of its exit from the European Union in talks of unprecedented complexity that are supposed to wrap up by the end of March 2019, when Britain actually leaves.

May also said she would be meeting with her cabinet on Monday and going to France on Tuesday for meetings with French President Macron.

But two of her top aides - joint chiefs of staff Nick Timothy and Fiona Hill - quit their posts on June 10 after becoming a focus of blame for the Conservatives' election disaster.

The DUP is strongly opposed to single-sex marriage and abortion, at odds with Conservative policies.

Amid reports senior Tories were sounding out potential replacements for Mrs May, prominent Conservative MP Heidi Allen said the Prime Minister had six months at most left in Downing Street.

The agreement came after Theresa May sent her Chief Whip Gavin Williamson to Belfast to negotiate with the Northern Irish party.

"The Conservatives have not yet broken the British system of democracy, but through their hubris and incompetence they have managed to make a mockery of it", it said in an editorial.