The industry is bracing itself for months of further uncertainty over Brexit after the UK voted for a hung parliament in the general election.

The Conservatives won the most seats, as expected, but not enough to form an overall majority. Tories sources said leader Theresa May would fight on despite facing calls from some in her party and opposition leaders to step down as PM.

It is widely expected that the Conservatives will attempt to form a minority government with the Democratic Unionist Party, which is closely aligned to Tory ideology.

Shadow chancellor John McDonnell told Radio 4 that Labour would also be seeking to form a minority government with the Scottish Nationalist Party and others.

With Brexit negotiations due to start with the European Union in 10 days, former UKIP leader Nigel Farage warned that the country could see “a significant backslide on Brexit”.

He told ITV News: “Theresa May is toast, it’s just a matter of time. Quite frankly, I don’t know what’s going to happen here.” Mr Farage also warned the turmoil could end in another election this autumn. He also raised the spectre of a second vote on the EU referendum.

Sterling plunged in value by two per cent against the US dollar and 2.3 per cent against the euro as financial markets reacted to the election uncertainty.