BBC News with Iain Purdon.
The British Prime Minister Gordon Brown has announced that he intends to stand down as leader of the Labour Party within months. Mr Brown said he had no desire to stay in his post longer than was needed to form a stable government following last week's inconclusive general election.
"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."
Mr Brown also said the Labour was opening formal talks with the Liberal Democrats, who have been negotiating with the Conservative Party about a possible coalition. The Liberal Democrat Leader Nick Clegg said Mr Brown's announcement could be important for a smooth transition towards a new government.
A leading Conservative William Hague said the Liberal Democrats would be making a great mistake if they tried to construct the government with Labour, because it would not be stable. He said that his party was willing to give ground on a key Liberal Democrat demand and move towards a more representative voting system.
"In the interests of trying to create a stable, secure government, we will go the extra mile, and we will offer to the Liberal Democrats, in a coalition government, the holding of a referendum on the Alternative Vote system, so that the people of this country can decide what the best electoral system is for the future."