Clegg: 'We will continue with critical work'

Mr Clegg said he was dropping the Lords reform bill after David Cameron informed him that an "insufficient number" of Tory MPs were prepared to support the changes.

He insisted that the Liberal Democrats would carry on in the coalition, despite the failure of the Tories to deliver on their promises.

He said:

The thing I care about most - the central purpose of the Liberal Democrats in this Government - is to build a fairer society.

We will continue with that critical work. We will continue to anchor this Government firmly in the centre ground.

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Clegg: 'Coalition contract broken'

Deputy Prime Minister Nick Clegg today accused the Tories of breaking the coalition agreement by not proceeding with House of Lords reform and said his party would be withdrawing support for constituency boundary changes in return.