Brown to quit in bid to woo Lib Dems

Gordon Brown tonight announced he will resign as Labour leader – but offered to stay on as British Prime Minister in a potential power-sharing government with the Liberal Democrats until his party has chosen a successor.

Mr Brown said he had asked the Labour Party to set in train the formal mechanism to replace him, after insisting he was confident an administration could be formed with Lib Dem allies to command a majority in the Commons.

The Prime Minister said: “The reason that we have a hung parliament is that no single party and no single leader was able to win the full support of the country.

“As leader of my party I must accept that as a judgment on me. I therefore intend to ask the Labour Party to set in train the processes needed for its own leadership election.

“I would hope that it would be completed in time for the new leader to be in post by the time of the Labour Party conference.

“I will play no part in that contest, I will back no individual candidate.”

He made his announcement in Downing Street after another day of Westminster drama, when hopes had seemed high of Tory leader David Cameron and the Lib Dems’ Nick Clegg doing a deal.

Mr Brown clearly felt, after Mr Clegg had formally requested opening negotiations with Labour, that his party’s only chance of succeeding in talks to head off Mr Cameron moving into No 10 was to quit.

The Prime Minister said his aim was to ensure a “stable, strong and principled government” was formed.

The Liberal Democrats thought they should first talk with the Conservatives, he said.

“Mr Clegg has just informed me that while he intends to continue his dialogue that he has begun with the Conservatives, he now wishes also to take forward formal discussions with the Labour Party.

“I believe it is sensible and it’s in the national interest to respond positively.

“The Cabinet will meet soon. A formal policy negotiating process is being established under the arrangements made by the Cabinet Secretary similar to the negotiations between other parties.

“The first priority should be an agreed deficit reduction plan to support economic growth and a return to full employment.”

Mr Brown’s resignation will be seen as the clearest possible signal that Mr Clegg made plain his party could not countenance a deal with Labour while he was still at the helm.

The premier’s decision to stand down as leader was swiftly welcomed by some Labour MPs.

Mr Brown's announcement came after 90 minutes of further talks earlier today at the Cabinet Office between the Tory and Lib Dem negotiating teams, and was clearly designed to wrong-foot Mr Cameron before he met his own MPs in the Commons.

Tory sources revealed that Mr Clegg and Mr Cameron also met face-to-face again this morning while the negotiating teams were locked in Whitehall talks.

The latest 30-minute conversation, which followed a half hour telephone chat earlier in the day, “went well”, the source said.

Mr Clegg then gave a progress report to his own backbenchers and it was after that meeting in Westminster that Mr Brown delivered his statement outside No 10.

Lib Dem negotiator David Laws said after his party’s MPs’ meeting that it was Labour who were seeking negotiations.

After the Lib Dems MPs’ briefing, he said: “This discussion is dependent not only on the Liberal Democrat party but also on the proposals and discussions that are on-going with the Conservative Party and the representations that frankly are being made by the Labour Party.”

But Mr Brown told reporters the Lib Dems had now asked for official talks, and summoned his Cabinet for 6pm.

As they trooped through the door of No 10, many would be wondering who they would back as the premier’s successor – regardless of the outcome of the power-sharing talks.

Deputy leader Harriet Harman, Home Secretary Alan Johnson, Children’s Secretary Ed Balls, Foreign Secretary David Miliband and his brother Energy Secretary Ed Miliband have all been tipped as possible replacements.

Meanwhile, Tory MPs were digesting the Prime Minister’s announcement as they quizzed Mr Cameron at their private Westminster meeting, on how far he was prepared to go to win Lib Dem support to gain the keys to No 10.

Cabinet minister Douglas Alexander - Labour's general election co-ordinator - said Mr Brown had decided to step down last week.

“He made a judgment shortly after the election results that this was the right course of action,” he told Sky News.

“He is very keen to ensure that he meets his constitutional obligations which is to ensure that a government is formed.

“If that government involves the Labour Party then, of course, he would be leading the Labour Party and would be Prime Minister but he has also made clear his determination to assume responsibility for the result on Thursday evening and, in time, to demit office.”

He insisted Mr Brown’s intervention was “dignified rather than desperate”.