Charles Kennedy is holding secret talks with Tony Blair to end the Conservatives' official status as the opposition.

The Lib Dem leader is calling for an end to the traditional two-party system in Westminster, and in a policy paper leaked to the Times, demands parity with the Tories in a "multiparty" parliament.

"The outcome of the 2001 election confirmed that Liberal Democrats are no longer a 'minor party' in a two-party system, but a significant player in a multiparty parliament. The concept of a privileged 'official' opposition - which dominates Commons procedure and results in an additional £500,000 payment of taxpayers' money to one party - should be abandoned as an anachronism," claims Liberal Democrat document.