Clegg: I want 'fundamental' electoral reform

British Liberal Democrat Party leader Nick Clegg today said he would fight for "fundamental" reform of Britain's electoral system in talks with other parties on the shape of the future government, following Thursday's inconclusive general election.

Lib Dems were today warned by senior Conservative Liam Fox not to hold the country "to ransom" with demands for electoral reform.

Mr Clegg was today meeting his party's MPs and peers to discuss overtures from both Tories and Labour which could lead to Lib Dems entering government as part of a coalition or agreeing to prop up a minority regime.

Negotiations between the parties were sparked by the inconclusive result of the election, which delivered the UK's first hung Parliament since 1974.

Arriving for talks in Westminster today, Mr Clegg said that he would approach discussions with the other parties in a "constructive spirit".

However, he said that the Lib Dems would be "very much making the case for the four big priorities" identified in their manifesto: fairer taxes, help for disadvantaged schoolchildren, a green economy and "fundamental political reform".

Conservative leader David Cameron this morning arrived at Conservative HQ in Millbank, where he is expected to be in talks with his inner circle before attending the Cenotaph ceremony.

The Tory leader entered the building by a back entrance without speaking to waiting reporters, and shadow cabinet minister Oliver Letwin made no comment as he arrived.

Mr Letwin forms part of the Tory negotiating team in talks with the Lib Dems, alongside shadow chancellor Oliver Letwin, shadow foreign secretary William Hague and Mr Cameron's chief of staff Ed Llewellyn.

On the Lib Dem side was home affairs spokesman Chris Huhne, Mr Clegg's chief of staff Danny Alexander, children's spokesman David Laws, and Andrew Stunell, the vice chairman of the campaign team.

Conservative sources confirmed that Mr Cameron was having meetings with his negotiating team ahead of his visit to the Cenotaph, after which he is expected to return to his west London home.

Shadow defence secretary Liam Fox warned Mr Clegg not to make the Lib Dems' long-time demand for the replacement of the first-past-the-post voting system in Westminster elections a stumbling block to the creation of a stable government to guide Britain through the economic crisis, when it was not a priority for voters.

Tories had won the right to see "the larger part of our manifesto" implemented after winning more seats and votes than any other party, in a campaign in which they opposed proportional representation, said Dr Fox.

"It would seem to me very strange in an election that was dominated by the economy...if the government of the UK was held to ransom over an issue that the voters did not see as their priority," he told BBC Radio 4's Today programme.

"I don't think that it's reasonable, given the result of the election, where we did come clearly ahead of any other party, that an agenda would be applied that was very much against what a very large proportion voted for."

Initial talks took place between Tory and Lib Dem negotiating teams last night, after Cameron put forward a "big, open and comprehensive" offer to work together, which aides made clear could include seats for the third party at the Cabinet table.

Mr Clegg was this morning talking to his senior frontbench team ahead of a gathering of the party's 57 MPs and 72 peers in Westminster and a later meeting of the Lib Dems' ruling federal executive.

Party rules require him to secure the approval of MPs and the executive before taking any step which could impact on the Lib Dems' political independence, in a "triple lock" arrangement which could also involve a special conference and a postal ballot of members.

However, Lib Dem sources indicated that no votes were expected today, and senior frontbenchers arriving at the Smith Square talks were giving no clues away about how things might develop.

Transport spokesman Norman Baker said he was expecting "a very, very interesting day" and former leader Lord Ashdown said the media would have to be "a little bit patient". Asked if there was support within the party for a deal with Tories, pensions spokesman Steve Webb said: "I don't know. This has all moved so quickly. It's only 36 hours since the result."

Many Lib Dem MPs and members are thought to be wary of entering any arrangement with Tories when the parties have such stark differences over issues like the economy, Europe, immigration and defence.

Some fear that Mr Cameron's offer of an all-party committee on electoral reform would kick the issue into the long grass. They may prefer Gordon Brown's promise of immediate legislation on a referendum on fairer votes.

Mr Brown remains Prime Minister while the impasse caused by the inconclusive election is resolved, and was today attending a ceremony at the Cenotaph to mark the 65th anniversary of VE-Day.

It was thought that informal contacts were going on between Labour and Lib Dems, after the PM yesterday said he respected Mr Clegg's decision to talk to Tories first but stood ready to discuss possible co-operation if negotiations with Cameron came to nothing.

Culture Secretary Ben Bradshaw today insisted Mr Brown could stay in No 10 in a coalition deal, telling Today: "It would be inconceivable to me for the Liberal Democrats to sign up to anything that fell short of a guarantee of a referendum on reform of the voting system.

"I still see the possibility of a progressive coalition in this country."

Lib Dem frontbencher Simon Hughes said the party was working "constructively" to seek a resolution to the uncertainty, but made clear it may not emerge before MPs return to Westminster on Wednesday.

"There won't be a deal on the table (today) because the talks have only just begun, but we will discuss where we want to go," said Mr Hughes.

"Everybody in Britain will expect us to be responsible. We know what the timetable is, it's between now and next Wednesday when parliament comes back."

But he stressed: "A radical party to its DNA is not going to stop being a radical just because we have the best chance in 35 years of influencing and implementing what we believe in."

Dr Fox said: "The question is, will the parties focus on the things they have in common and provide a stable government for the country or will the elements within the parties be allowed to focus on their differences and try to obstruct that process?

"What is important here is to have a change in mindset of the politicians. It's not a question of what we want, it's a question of what the voters decided."