Labour have pulled out of talks with the Liberal Democrats in their effort to forge a "progressive coalition" as the stalemate following the UK hung parliament looks set to end with a Tory/Lib Dem coalition.
Conservative and Liberal Democrat leaders have reportedly been holding talks in the cabinet office for a number of hours as Labour looks set to declare an end to negotiations.
According to Sky News sources, talks between Labour and the Lib Dems "never got off the ground".
One reason the talks failed, it has been speculated, is a belief amongst Labour figures that the Lib Dems were pushing for "unaffordable" tax and spending pledges.
Labour MP Kate Hoey recognised Labour had reached the end game and said: "I think it's time to accept that we lost the election. We should lose graciously."
Health secretary Andy Burnham, speaking on radio, said Labour had to respect the result of the General Election. "We can't get away from the fact Labour did not win."
The word on Downing Street is an announcement between the Tories and liberal Democrats is imminent. Conservative MP Alan Duncan, speaking to the BBC, said: "It seems they (the Lib Dems) are more interested in us than with Labour."
The Conservative party's offer of a referendum on the alternative voting system is believed to have been the deal-clincher.
The Liberal Democrat party and its ruling federal executive are set to meet later on tonight. At least three-quarters of both bodies must approve of any deal with the Conservatives.
So five days after one of the most tightly-fought UK elections in years, it would appear David Cameron is set to be Prime Minister with the support of Nick Clegg's Liberal Democrats.
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