Penny Mordaunt admitted the Conservative Parry has taken a “battering” because it failed to honour “the trust that people had placed in it” after she lost her seat to Labour.
Labour’s Amanda Martin ousted the Leader of the House of Commons from Portsmouth North, winning by just 780 votes.
Ms Mordaunt, 51, would have been hotly tipped to run for the party leadership again had she managed to keep her seat.
She said: “Tonight, the Conservative Party has taken a battering because it failed to honour the trust that people had placed in it. You can speak all you like of security and freedom, but you can’t have either if you are afraid.
“Afraid about the cost-of-living or accessing healthcare, or whether the responsibility you shoulder will be recognised and rewarded. That fear steals the future, and it only makes the present matter and that is why we lost.
“Our renewal as a party and a country will not be achieved by us talking to an ever smaller slice of ourselves but being guided by the people of our country. And if we want again to be the natural party of government, then our values must be the people’s.
“I’ve lost many good colleagues tonight but I hope that like me they intend to carry on serving their communities with even stronger heart, our country needs all of us.”
Ms Mordaunt, who had held the seat from 2010, also said she will “never stop caring” for the people of Portsmouth.
As the count was taking place at Portsmouth Guildhall, Conservative and Labour sources remained coy about their chances, with officials from both parties expecting a close result.
However, as the picture became clearer in the early hours of Friday, Tory officials looked downbeat, while Councillor George Madgwick, leader of the Portsmouth Independent Party said the city had lost a “really good MP”.
Ms Mordaunt appeared to swiftly leave the venue as members of the press approached her for further comment.
Newly elected MP Ms Martin thanked Ms Mordaunt for her 14 years of service and the “amazing” role she played during the King’s coronation.
She said afterwards: “We ran a positive campaign, everything we put out we didn’t over-promise, we’re not over-promising.
“We know it’s a really tough job, it’s not going to be an overnight fix.”
Cheers rang out as it was announced the Labour Party received 14,495 votes, while the Tories got 13,715. The turnout was 59.25%.
Ms Mordaunt – a former magician’s assistant – went viral for carrying two heavy swords at the King’s coronation, dressed in a custom-made teal outfit with a matching cape and headband with gold feather embroidery.
As Lord President of the Council, she was responsible for bearing the Sword of State and presenting the Jewelled Sword of Offering to Charles – the first time the duty had been carried out by a woman.
She was hailed as stealing the show and later disclosed she did press ups in preparation and practised with weighted replicas.
The Navy reservist became an MP in 2010 and was made the UK’s first female defence secretary in 2019, but was bumped from the role into more junior positions by Boris Johnson after 85 days in a reshuffle.
She took part in two seven-way TV election debates, where she clashed with Labour deputy leader Angela Rayner in heated exchanges over tax, NHS waiting lists, and the push for net zero.
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