Big issues where parties are learning the art of compromise

SPENDING CUTS

Agreement: Deficit reduction plan to be significantly accelerated. Emergency budget within 50 days and establishment of Office for Budget Responsibility, with "modest" cuts of 6bn to non-frontline spending, subject to assessments by Treasury and Bank of England. Some of those savings will be spent elsewhere, not on budget deficit. High earners stripped of Child Trust Fund and tax credits.

Verdict: Tories get their way with cuts starting this year although some money will now be used to help jobs by cancelling backdated business rates rather than simply reducing deficit. Lib Dems ensure it won't mean dangerous slashing of services.

TAX

Agreement: National Insurance increase – dubbed a "jobs tax" – will be halted for employers but will go ahead for employees. Tory planned inheritance tax cut put on hold. Gradual move towards Lib Dem plan to increase income tax threshold to 10,000, including "substantial" increase from April 2011. Lib Dems will be able to abstain on Tory marriage tax allowance.

Verdict: Lib Dems secure big concessions. Tories forced to climb down over reversing employee NI hit, ditch inheritance tax plan and go it alone of tax breaks for marriage while Lib Dems get progress towards their "fair tax" plan.

BANKS

Agreement: Introduce a banking levy, "robust action" to tackle "unacceptable" bonuses, independent commission to consider splitting retail and investment banking regulation.

Verdict: Both sides happy.

Agreement: Cap on immigration and an end to child detention in immigration centres.

IMMIGRATION

Verdict: Lib Dems forced to forfeit planned amnesty for

long-term illegal immigrants who want to work and accept Tory policy for immigration cap but get something to sell to the members on child detention.

EUROPE

Agreement: This Government will not join the euro or propose to join the euro and won't propose to transfer any new powers to the European Union this Parliament. Continue to legislate for a "referendum lock" requiring public vote before any future powers are handed to Brussels.

Verdict: Europe was one of the Tories' red lines, but Lib Dems probably wouldn't have pushed on this issue anyway.

TRIDENT

Agreement: The Government will be committed to the maintenance of Britain's nuclear deterrent but Trident renewal will be scrutinised to ensure value for money. Lib Dems will continue to make the case for alternatives.

Verdict: Tories made clear they were not for moving although value for money assessment raises potential strife.

POLITICAL REFORM

Agreement: Fixed-term parliaments, with next election on first Thursday in May, and 55 per cent majority needed to dissolve parliament sooner. Referendum on introducing Alternative Vote system. More equal constituency sizes, and commitment to wholly or mainly elected House of Lords.

Verdict: Tories forced to give ground to Lib Dems, with the AV referendum – likely to see some Tory MPs lose their seats – the main concession. Tories will be allowed to campaign for 'no' vote in referendum, however.

CIVIL LIBERTIES

Agreement: Great Repeal Bill or Freedom Bill scrapping ID cards, the national ID register and next generation of biometric passports. Freedom of Information laws to be extended, move to more restrictive Scottish DNA database and further regulation on CCTV.

Verdict: Everyone happy. parties close on these issues anyway.

OTHER

The deal also agrees a full spending review to be completed by the autumn, with NHS spending to increase in real terms.

A "significant" pupil premium will be introduced to help disadvantaged pupils, and new school providers can enter state system, a key Tory policy. Lib Dems will be able to abstain if report into higher education recommends raising tuition fees.

Review of public sector pensions, with restoration of earnings link for basic state pension from April 2011.