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Nick Clegg fuels speculation of coalition with Labour

Nick Clegg has fuelled speculation that he is positioning for coalition with Labour next year by saying he believes Ed Miliband's party has "changed".

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Nick Clegg: 'Labour have changed'

The animosity between Ed Balls and Nick Clegg had previously been regarded as a major obstacle to the two parties joining up if there is a hung parliament after a general election.

I think they've [Labour] changed. I think there's nothing like the prospect of reality in an election to get politicians to think again and the Labour Party, which is a party unused to sharing power with others is realising that it might have to.

There is just no doubt in my mind that if there were a Labour-Liberal Democrat coalition, we the Liberal Democrats would absolutely insist that government would not break the bank.

– Nick Clegg

Asked about Labour on the programme Mr Clegg said that if such a pact was formed, the Lib Dems would set out to restrain Labour from spending too much.

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