Deputy Prime Minister Nick Clegg announced today that plans to reform the House of Lords will be abandoned after the Conservatives had "broken the contract" between the coalition government partners.
Clegg told a news conference that Liberal Democrat MPs will in turn block plans made by the Conservatives to redraw the parliamentary boundaries.
The Lib Dem leader, addressing "modernisers and campaigners," said he was "disappointed" but added, "Lords reform has always been a case of two steps forward and one step back."
Mr Clegg said he made the decision after Prime Minister David Cameron told him that an "insufficient number" of Conservative MPs were prepared to back Lords reform.
However, he insisted that the Lib Dems would carry on as a coalition member, calling his announcement "an amendment to the contract."
Culture Secretary Jeremy Hunt said although Mr Clegg's decision was "disappointing," it would not change the parties' commitment to work together.
Shadow Justice Secretary Sadiq Khan called the deputy prime minister's announcement a "humiliation" for the government and a "spectacular failure" of leadership from David Cameron.
Simon Hughes, the Liberal Democrats' deputy leader, said although the Conservative MPs' decision not to back House of Lords reform was a "major failure", "life goes on" when it comes to the coalition.