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Coalition deal produces five-year fixed-term UK parliaments

The UK will move to five-year fixed-term parliaments as part of the coalition deal between the Conservatives and Liberal Democrats, it emerged tonight.

Sources indicated that the parties had also agreed to a "significant acceleration" of efforts to reduce the deficit - including £6 billion of spending reductions this year.

The new power-sharing administration will scrap Labour's planned rise in National Insurance but some of the benefits will now go to reducing income tax thresholds for lower earners.

And Tory plans for an inheritance tax cut have been sacrificed as part of the deal.

The Liberal Democrats, who will be given five seats at the new Cabinet table, will also be allowed to take alternative positions on some key issues.

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