Apologies for the long post, but I linking to this wouldn't work as it's from a live blog (The Guardian). It's a summary of what is essentially the coalition manifesto:
Economic measures for an agreement which has deficit reduction "at its heart"
• £6b in year cuts in non frontline services subject to the advice from the treasury and the bank of england (Tory)
• Scrapping of national insurance rises (Tory)
• A substantial increase in the personal tax allowance from April 2011 with a focus on low and middle income earners, with a "long term goal" of a £10,000 personal tax allowance. There is no a timetable for this, but there is a promise to make further real term steps each year towards this objective. This is described as a "funded increase". It will be funded by taking the money the Tories had planned to use to increase the employee threshold for national insurance, and by an increase in capital gains tax for non business assets to bring it closer to the level of income tax.
• Marriage tax allowance. The liberal democrats have agreed to abstain on this, which gives the Tories a "real chance" of getting that through.
Lib Dem pledges that have been dropped
• Tax relief for higher rate pensioners will not be pursued
• Mansion tax
Tory pledges that have been dropped
• Raising the threshold on inheritance tax which is described as "unlikely to be achieved in this parliament".
Lib Dems priorities that have been secured
• Referendum to bring in some form of alternative vote system. Coalition members will be subject to three-line whip to force the legislation for a referendum through, but they will be free to campaign against the reforms before referendum.
• New pupil premium to be introduced, steering more funding to schools for every child they take from poor homes. Both parties back this policy, but the Lib Dem version attaches more money to it.
• Reducing the tax burden on low earners. This could go some way towards the Lib Dem aim of lifting tax threshold to £10,000.
• A wholly or mainly elected house of Lords.
• More equal constituency sizes
• Fixed term parliaments, including this one. The next general election will be held on the first Thursday of May 2015. Legislation will mean such agreements can only be broken by an enhanced majority of the House of Commons.
Tory priorities that have been secured
• A cap on immigration and an end to child detention immigration controls (the latter was a Lib Dem proposal).
• Welfare reform programme to be implemented in full.
• School reform programme providing all schools are held accountable.
• A commitment to maintaining Britain's nuclear deterrent. Renewal of Trident will be scrutinised to ensure value for money. Liberal Democrats will be free to continue the case for alternatives.
• The government will make no proposals to join the euro.
• No proposals to transfer new powers to the European Union.
• A referendum lock will ensure that any proposal to transfer new powers must by law be put to a referendum.
Areas that were already in agreement will see a major programme of civil liberties
• A great repeal or freedom bill to scrap the ID card scheme and the national identity register and the next generation of biometric passports
• Extending the scope of the Freedom of Information bill to provide greater transparency
* Adopt protections of the Scottish model for the DNA database
• Protecting trial by jury
• Reviewing libel laws to protect freedom of speech
• Further regulation of CCTV and other items
• Measures to boost economy in key areas such as low-carbon industries and investment in infrastructure. A green investment bank, a smart grid, retention of energy performance certificates while scrapping home information packs.
Areas of opt outs for either party
• Lib Dems will be free to maintain their opposition to nuclear power while permitting the government to put forward the national planning statement for ratification by parliament so that new nuclear construction becomes possible.
Banking reform
• A banking levy will be introduced.
• Bonuses will be tackled.
• A "more competitive banking industry".
• More credit to flow to businesses. The proposals of the respective parties will be looked at before deciding which is the better one.
• An independent commission will be set up to consider Lib Dem proposals to separate retail and investment banking and the Tories' proposals for a quasi separation. An interim report will be published within a year.
• The Bank of England could be given control of macro prudential regulation and oversight of micro prudential regulation under proposals to be put forward.