16:18 BREAKING NEWS: David Laws, a member of the Lib Dem negotiating team, has just spoken to the media. He said there has been a 'clear endorsement' by Lib Dem MPs of the strategy Nick Clegg is pursuing. So apparently Lib Dems are backing the arrangement of a deal with the Conservatives. He said they will continue to talk to the Conservatives with no artificial timescale. He also said electoral reform was yet to be discussed with the Tories.
So the Lib Dems are continuing to talk with the Tories. We shall see what prevails.