It seems now, inch by inch there is to be some sort of Lib Dem-Tory deal. Momentum is certainly building for a deal today, the framework is certainly in place for something substantial to happen today. At 12:45, there was another meeting between Nick Clegg and David Cameron. At 2pm, Liberal Democrat MPs are due to meet in the House of Commons, at the same time David Cameron is to meet with his Shadow Cabinet. Later on at 5pm, Nick Clegg and the Lib Dem negotiating team are to convene their Federal Executive at 5pm. Then at 6pm, David Cameron is to meet with his new Parliamentary Party in the House of Commons. In these meetings it seems the Tory leadership and Lib Dem leadership would be selling the deal to their colleagues. Sky Sources are reporting that a "outline of a Tory - Lib Dem deal is in place".
But on the other hand, Labour and Gordon Brown have not just given up on forming an alternative "rainbow coaltion" government, with Lib Dem and Nanationalists support.