Get ready for the Lib Dems to do no deal

Nick Clegg needs to row back from his current position. He knows now that he is damaged goods. He may have personally wanted to do the Tory deal, but was browbeaten into opening talks with Labour. But if he is sensible, he needs to draw a line. If I was David Cameron I would put a time limit of 11am for a decision to force Nick Clegg's hand.

Nick Clegg has to say there will be no deal, but Lib Dems would abstain on a Queen's Speech and Budget. This would enable a Tory minority Government to do enough to start sorting out the financial mess and guarentee an election later in the year.

Anything else now would be very bad. The Lib Dems cannot be trusted, and any coalition needs to have some element of trust at its heart.

Squiffy.