17:14 BREAKING NEWS : The Prime Minister Gordon Brown, is to resign as Labour leader within a few months. Also now formal neogotations has started between Labour and the Liberal Democrats.
Mr Brown says he has "no desire to stay in my position longer than is needed to ensure that the path to economic growth is secured" and the route is paved for political reform. He says he will ask his party to launch a leadership contest and will play no part in it - expecting a new leader to be in place around the time of the Labour conference in September.
Gordon Brown says Nick Clegg wants to begin formal discussions with the Labour Party and plans are now being made to allow that to happen.