Gordon Brown told it's time to go as hopes fade for deal with Lib Dems

"That is leading a growing body of older ministers to argue that Labour should now recognise this is a good election to lose, relinquish power and regroup with dignity.

A clutch of former senior ministers including David Blunkett, the former home secretary, George Howarth the former Home Office minister, and Malcolm Wicks, the former energy secretary, were arguing that it is best for Labour to admit defeat, hold a leadership election and come back to crush a Conservative/Liberal Democrat coalition of convenience at the next election.

In a foretaste of the attack Labour will mount on the Liberal Democrats, Blunkett said: "We're going to have, by the look of it, a coalition government with a Liberal Democrat partner that doesn't believe one word of the Tories on Europe, doesn't believe in the Tories' economic policy and has considerable doubts about their approach in terms of taxation, not least in terms of inheritance tax, but is having to go in with the Conservatives in order to gain power.""

I agree entirely. Let's accept that we've lost and stand ready to win next time, when we will probably be able to command the 'progressive vote' completely as the lib dems will be tainted by Tory association.
However, the lib dems may then be seen as a credible and pragmatic party which will probably work to their advantage.
But that doesn't matter as Labour lost 90 seats so should stand aside.