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Page last updated at 18:10 GMT, Monday, 10 May 2010 19:10 UK

Gordon Brown 'stepping down as Labour leader'

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.

Senior Tory George Osborne said they would offer the Lib Dems a referendum on changing the voting system.

The BBC's Carole Walker said the shadow chancellor had said the Tories were making a final offer to the Lib Dems, for a referendum on switching from first-past-the-post to the Alternative Vote system.

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.

Continues at link to BBC UK