Price of another coalition will be electoral reform and softer Brexit

It has been a long, hard road back for the Liberal Democrats after their dalliance with David Cameron cast them into a decade of political exile. Yet now the party, that still bears the scars of coalition government on its back, seems surprisingly keen to have another crack at the whip.

Sir Ed Davey, a veteran of 2010-15, made it quite clear that he is prepared to lead his MPS into another parliamentary pact, this time with Labour.

However, as he made equally evident, he will take the plunge for a second time only if he can extract a high enough price from Sir Keir Starmer.

Top of his wishlist will be electoral reform and finally achieving his party’s cherished dream of a switch to proportional representation.

“PR is absolutely on the table for the Liberal Democrats, of course it is,” he told the BBC when asked whether it would be one of his coalition demands.

“Our current system fails the voters. It doesn’t put the voters in control of politics. That’s wrong. I’m determined to try to make sure our democracy is fairer to people and more representative.”

It would not, of course, be the first time a Lib Dem leader had signed a coalition deal in return for a promise on electoral reform. That is exactly what Nick Clegg did in 2010, only for voters to choose in a referendum just a year later to keep the current first-past-the-post system.

Given that bruising experience, this time Sir Ed is likely to demand that MPS get the final sign-off on a seismic change to how Britain is governed.

Labour members voted in proportional representation at last year’s conference, but such a change would be highly unpopular among its MPS.

Another area where the Lib Dem leader would press his claims – and here he may well be pushing at an open door – is on Brexit. His party campaigned for a second referendum in the run-up to the 2019 election but notably has not called for one since.

Its position now is to forge closer ties with the EU, as Sir Keir has also promised, before rejoining the Single Market, which Labour has ruled out.

The Lib Dems make clear in a “What we stand for” section on their website that their eventual aim remains “ultimately, rejoining the EU”. The talk will also add to speculation of a “progressive pact” at the next election, with the parties standing aside for each other in target Tory constituencies. Given that they are still haunted by the coalition, it is possible the Lib Dems may resist pressure to enter into a formal alliance with Sir Keir.

They could, instead, strike a confidence and supply deal with the Labour leader, propping up his minority government in return for support on their priority policies.