William Hague has just briefed the lobby on the state of negotiations:

– The Tory “final offer” is a whipped vote on a referendum on the Alternative Vote. The shadow cabinet and parliamentary party have agreed to “go the extra mile”. The Tories, of course, would campaign for first past the post in the referendum.

– There is no prospect of the Tories meeting Lib Dem demands for the immediate implementation of AV, without a referendum. “On the issue of electoral reform we have reached our bottom line,” he said.

– Clegg’s team have told Hague that their primary aim is for a coalition with a party that at offers immediate electoral reform Read more

George Osborne has just briefed journalists in the corridor outside the meeting of Tory MPs. A Cameron government would be prepared to whip a referendum on the alternative vote through the House of Commons, he said.

Radical, for a Conservative government. But it falls short of what Labour are offering; immediate AV and a referendum on other forms of electoral reform (eg AV Plus). Read more

In case you missed it:

And here is a transcript kindly provided by Sky: Worth reading right to the end. (Also worth pointing out that Sky has missed out the bit where Boulton accuses Campbell of being unelected and the latter replies: “You’re elected are you?”

ALASTAIR CAMPBELL:
Yes, I know, you’re obviously upset that David Cameron is not Prime Minister.

ADAM BOULTON:
I’m not upset, you are, you keep casting aspersions and …

ALASTAIR CAMPBELL:
Calm down.

ADAM BOULTON:
I am commenting, don’t keep saying what I think.

ALASTAIR CAMPBELL:
This is live on television. Read more

Liberal Democrat Leader Nick Clegg said:

“Over the past four days we have been working flat out to deliver an agreement that can provide stable government that can last. Read more

A remarkable turn of events. Here are some early thoughts:

1) A lesson in never underestimating Brown. His timing could have been no better in placing maximum pressure on the Tories. This will test Cameron’s nerve like nothing else. Is he willing to make the ultimate sacrifice on electoral reform to take power? Will the MPs buckle at the 6.30pm meeting? Is power worth 25 Tory seats at the next election (which is the price of AV)? Read more

Ed Miliband has supposedly told his mother that he wants to stand for the Labour leadership, prompting all sorts of “Kane and Abel” type speculation given that older brother David is the current frontrunner. Read more