Gordon Brown has announced that he is stepping down as head of the Labour Party, which should improve Labour’s chances of forming a coalition with the Lib-Dems and the small fry parties:

Gordon Brown has announced he will step down as Labour leader by September – as his party opens formal talks with the Lib Dems about forming a government.

The PM’s continued presence in Downing Street was seen as harming Labour’s chances of reaching a deal.

Labour and the Tories are both trying to woo the Lib Dems with promises on electoral reform as the battle to run the country reaches its critical phase.

Still, we are in for a time of minority government, with either Labour or the Tories in the lead, and no small amount of instability.