Nick Robinson looks at Labour's scheming:

One group in the Cabinet is arguing that the Tories won the election, that they could govern as a minority as Harold Wilson did and that Labour should relish going into opposition in such a strong position.

Another larger group argues that if there is a chance of forming a "progressive alliance" then Labour should take it. It is clear, though, that the presence of Brown is a block to any such deal. Thus, what is being discussed is for the Prime Minister to announce his intention to resign after seeing through the transition to a new coalition government, managing the current economic crisis and passing the instant legislation he promised to change the voting system. Those proposing this solution argue that it allows Labour to say that the Lib Dems aren't choosing their leader whilst meeting their demands for a change.

On cue, Gordon Brown resigns. From Politics Home's live-blog:

Laura Kuenssberg reports that Liberal Democrat insiders have said that the next step will be to enter formal discussions with the Labour Party.

More live-blogging at the FT.

(Photo: Christopher Furlong/Getty.)

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