http://news.bbc.co.u..._2010/8672859.stm
Gordon Brown has said he is stepping down as Labour Party leader - as his party opens formal talks with the Lib Dems about forming a government.

Mr Brown, prime minister since 2007, said he hoped a successor as Labour leader would be in place by September.

The Lib Dems have been negotiating for days with the Tories - who won the most seats and votes in the UK election.

But the Lib Dems have asked for formal talks with Labour. Mr Brown said it was in the "national interest" to respond.

Mr Brown's statement will be seen as a move to smooth the way to a deal between Labour and the Liberal Democrats to form a government.

Brown is trying to finesse the situation, arrange an orderly transition for himself rather then a public sacking to secure a deal with Lib Dems. He was pretty sure to be removed no matter what happens, so this is probably a smart move.

For their part, the Lib Dems look like they are going to try and play the Cons against Labour. The Lib Dems have been talking to Labour all along, but moving to formal negotiations means that the deal making with the Tories is not going well.

Jay