Gordon Brown's decision to stand down as leader was welcomed by Labour politicians and members some of the smaller Westminster parties last night..
The former mayor of London Ken Livingstone said. "It is good that he has made it clear he is not going to put his own career and ambitions ahead of what is best for the country and the Labour party."
Lord Adonis, Labour's transport secretary and part of Gordon Brown's inner circle over the past few days, said it was "possible to form a coalition government between Labour and the Liberal Democrats".
"Ideologically and in policy terms we are very close together ... This would be a partnership of principle. I believe it has the capacity to form a strong, stable government, able to take on Britain's economic and political challenges and we will go into those negotiations determined to make them succeed on behalf of the British people."
John Mann, who called for Brown to go on Saturday, said the prime minister's announcement today was "wise and brave".
"We've just lost the election. We've a minority Tory government that wants to make public sector cuts that we need to fight against. That's why we needed a new leader to regroup and take on this Tory onslaught on our public services. It is the right decision. It allows us to move forward."
Brown's move was welcomed by the Lib Dem elder statesman Lord Steel who described his statement as "extremely dignified".
"I think he's put the interests of the country first ... And the fact that he is going to be gone by September is absolutely crucial to any possible negotiations between the Liberal Democrats and the Labour party."
Steel said the move could encourage the Conservatives to improve their offer.
"It does also put the pressure, of course, on the Conservatives to come up with a better deal than whatever is on offer at the moment and I hasten to say I'm not involved in that so I'm not talking out of turn, I don't know anything about the current negotiations. I think that it does open up a prospect which is more palatable to the Liberals generally if they can get it together."
Smaller parties that could be a crucial part of any future "progressive alliance" led by a deal between Labour and the Lib Dems were quick to express their support of Brown's decision. The SNP Westminster leader Angus Robertson MP said: "He has done the right thing. From the outset of these negotiations, the SNP have made it clear that we believe a progressive alliance can deliver the best result for the people of Scotland rather than a Tory government which was resoundingly rejected by the people of Scotland last week, with the Tories in fourth place north of the Border. We welcome the news that Labour and the Liberal Democrats are now moving towards this."
The Plaid Cymru MP Elfyn Llwyd said Brown had "done the decent thing following the overwhelming rejection of his premiership last Thursday".
"It was clear that he had no mandate from the people to maintain his position in Downing Street and he has now shown that he has heard that message loud and clear," Llwyd said.
"Mr Brown's announcement is a signal to other progressive parties that Labour is willing to talk in order to explore the possibility of establishing a progressive alliance to govern in Westminster."
