telegraph on the subject:
The development paves the way for the Conservatives to agree a power-sharing deal with Nick Clegg’s party.
It comes after senior Labour figures urged Gordon Brown to “call it quits” on efforts to form a coalition government with the Liberal Democrats.
There were reports that Mr Brown was set to resign as prime minister on Tuesday night.
The Lib Dems opened up talks with Labour yesterday morning but at a meeting late last night, some Lib Dem MPs shifted back towards a Tory deal.
One senior Lib Dem said: “There is a sense that the party has realised that the Conservative deal is the best deal on offer. The Tories are desperate and they’ve improved their offer a lot.
“As long as the party can get over the emotional hurdle of backing the Tories, that’s where we’ll end up.”