4.00pm: Laura Kuenssberg has just said on BBC News that she has seen bags being loaded into cars at the back of Downing Street. "Large hold-alls", she said. She is implying that the Browns are getting ready to leave.

3.55pm: Labour has given up talking to the Lib Dems, according to the BBC. This is what Laura Kuenssberg has put out on Twitter.

No 10 sources recognise talks with the libs and labour are over and working out how to declare their side of the negotiation is at an end

@'The Guardian'