The most contentious area, that of electoral reform, has been reported to have been settled with plans for a commission which will be given 12 months to agree on the issue. While the Liberal Democrats are committed to proportional representation, the Labour leader Tony Blair is not persuaded of its necessity.
One source close to the negotiations said they had reached an "absolutely substantial and concrete" agreement.
Labour has said it will hold a referendum on proportional representation if it wins the election, Tony Blair has been deeply reluctant to commit himself to campaigning for a "yes" vote.
The Tories can now be expected to claim that there is no real difference between the two parties, and that a vote for the Liberal Democrats is a vote for Labour.Reuse content