Far-reaching changes to make Britain a better and fairer place have been agreed under the historic agreement reached on Tuesday between the Liberal Democrats and the Conservatives.

The two parties have formed a coalition to provide the political stability that Britain needs in difficult economic times. Liberal Democrat leader Nick Clegg will serve as Deputy Prime Minister, with senior Liberal Democrats serving in many key government roles, including economic guru Vince Cable helping to shape the future of the economy.

Announcing the party’s entry into the coalition, party leader Nick Clegg said, “We are now going to form a new government. More importantly than anything else, we are going to form a new kind of government; I hope this is the start of a new kind of politics I have always believed in. Diverse, plural, where politicians with different points of view find a way to work together to provide the good government for the sake of the whole country deserves.

“That was what we were asked to do by the people of Britain in the General Election last Thursday and that is what we will deliver.”

Talks with the Labour party earlier collapsed as it became clear that agreement could not be reached on several crucial issues and that an agreement with Labour would not command the confidence of Parliament – an essential condition for a government to be formed.

Carlisle parliamentary candidate Neil Hughes said: “Liberal Democrats have gone into government so that some of our long-held policies, such as a reform of the tax system benefitting the lower-paid and a better start for children, can be put into practice. I sincerely hope that if the Conservatives fail to honour any of the promises they have made as part of the deal Nick Clegg will withdraw our party from its coalition deal at the earliest opportunity.”

Commenting ahead of the announcement, North West Liberal Democrat MEP Chris Davies said, “A deal with Labour was not credible. A Lab-Lib government would have survived the first crucial votes but it would have been worn down by attrition. Vote after vote would have been lost in the months that followed until the government collapsed in disarray. We would not have had the strong, stable government able to make the difficult decisions now required, and we would have little or nothing to show by way of achievement.”

He concluded, “The way ahead will be rocky, and what lies ahead is uncertain, but today I am proud to be a Liberal Democrat and I am looking forward to the journey.”