Labour and the Liberal Democrats have reached a compromise on electoral reform at Westminster.

The deal, which will secure the future of Lib/Lab cooperation and will feature in the next Labour manifesto, will lead to a review of the way PR has worked in Scotland and Wales after their 2003 elections. If a case for change is apparent, a referendum will be held.

The Lib Dems will "continue to keep up the pressure" for electoral reform, said party leader Charles Kennedy.