Four senior Liberal Democrat politicians defeated in the general election, including former business secretary Vince Cable, have turned down offers of a peerage from Nick Clegg in the dissolution honours list.
A report conducted by the Fabian Society and Centre Forum has found significant policy areas that the parties could work together on.
Ed Miliband will broaden his drive for the devolution of political and economic power to the cities and regions, and away from London, by saying he wants an elected second chamber completely recast as representative of the cities, regions and nations of the UK.
David Cameron and Nick Clegg have challenged critics in both their parties by declaring that the coalition will last until the next general election in 2015, as they insisted the row over House of Lords reform would not be allowed to disrupt the work of the government.
Nick Clegg is mounting a direct challenge to David Cameron by ruling out any moves to repatriate powers to Britain from the EU while eurozone leaders are struggling to save the single currency.