Instead, what if they offered a supply and confidence arrangement and they remain in opposition.
Would there have been an earlier election than 2015? And would the Lib Dems have lost as badly in the OTL if they weren't seen as part of the Conservative government?
They still suffer because from 2006 onward, the LibDem's were a party struggling (I'll bring up figure in a moment to illustrate this*). They remain the Party of Protest to some extent, but suffer still suffer, if to a lesser degree. I'd say the lower they can get is somewhere around 20-odd in such a scenario.
Cameron and his minority last 2 years, tops, before going to the country to get a proper mandate, which they have a bloody good chance of getting. Minority Government's are utter hell, as Harold Wilson found out, and one that is so below the line like this is not going to survive a whole 5 years. This will have a terrible effect on the Economy, as this was the height of the Recession and there was need for a stable Goverment, which a minority with supply and confidence didn't and couldn't give.
I'm a Yank . . .
but aren't the Lib Dems somewhat libertarian and pro-market, but in other ways more radical than Labour?
We're the non-Socialist alternative to Labour, often straying between the Centre and the Centre-left.
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*Okay, so the numbers;
2005 General Election. 5,985,454 votes, 22% of the electorate, 62 seats.
2005 Local Elections. 25% of votes, 3 Councils and 493 (+40) Councillors.
2006 Local Elections. 25% of votes, 13 councils, 909 Councillors.
2007 Local Elections. 23% of votes, 23 councils, 2171 Councillors.
2007 Scottish Parliament. 16 seats, loss of 1. 16.2% Constituency (+0.9%), 11.3% Regional (-0.5%).
2007 Welsh Assembly. 6 seats, no change. 14.8% Constituency (+0.6%), 11.7 Regional (-1%)
2008 Local Elections. 35% of votes, 12 councils, 1805 Councillors.
2008 London Assembly. 3 Seats, loss of 2. 13.7% of votes (-4.7). 11.2% of Party List votes (-5.3).
2008 London Mayoral. 9.8% of votes. Eliminated first round.
2009 Local Elections. 28% of votes, 1 council, 484 Councillors.
2010 Local Elections. 26% of votes, 14 councils, 1730 Councillors.
2010 General Election. 6,836,248 votes, 23% of the electorate, 57 seats.
Polls;
2005, lowest 18, highest 26, hovered around 20 for most the year.
2006, lowest 14, highest 25, hovered bellow 20 for most the year.
2007, lowest 11, highest 21, hovered frequently around 15.
2008, lowest 11, highest 21, hovered at 15.
2009, lowest 14, highest 22, hovered between and rarely broke 20.
2010, lowest 15, highest 22. After the election was called, polls hovered around 19, pre-debate had a 24 average, post-debates pushed into the 30's and at points overtook both main Parties.