Ed Vaizey warned the Conservatives needed to rethink their approach to Brexit as he held on to the safe seat of Wantage.
It was Mr Vaizey's fourth election victory and although he secured the highest ever vote share in the constituency he saw his majority cut by almost 4,400.
The 49-year-old earlier admitted his party's campaign under Theresa May had been 'pretty bad' and needed 'a bit of magic dust'.
But he rejected suggestions the Prime Minister should resign despite the Tories losing their slim majority in Parliament.
In his victory speech Mr Vaizey told a cheering crowd: "It has been an extraodinary night for British democracy and a less extraodinary night for the Conservatives.
"There is no mandate now for a hard Brexit. And I am sure there will be a lot of soul-searching in the Conservatives over the next few days and weeks."
Mr Vaizey secured 34,459 votes, a 54.18 per cent share, with Labour's Rachel Eden taking 17,079, the Lib Dems' Christopher Carrigan 9,234, the Greens' Sue Ap-Roberts 1,546 and UKIP's David McLeod 1,284.
Turnout was 74.3 per cent, up from 69.8 per cent in 2015.
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