Prime Minister Gordon Brown has decided to retire in favour of party and national interest. He will take his final bow in September this year which is just four months away. I believe this four months is needed for Labour to decide on a new leader, the transition process vital. This means Labour may be the favourable choice of the Lib Dems now. Hence, talks between Tories and Lib Dems may be a failure due to the latest decision by Prime Minister Gordon Brown.
Tories may argue that they still hold the majority, this will result in another General Election by end of this year. This time the ball will fall in the people's court, they will have to decide on a certain government. The UK simply cannot afford throwing hundreds of Millions on running general elections after general elections and it doesn't make any sense wasting such valuable money while the economy is in dire straits. For now, Cameron's hopes may be dashed!
http://news.bbc.co.uk/2/hi/uk_news/politics/election_2010/8672859.stm
http://edition.cnn.com/2010/WORLD/europe/05/10/uk.election.brown/index.html