David Cameron will begin work today on putting together his new coalition government with the Liberal Democrats.

Following the Witney MP's triumphant arrival at No 10 last night, the new Conservative Prime Minister declared that it would be a "full and proper" coalition between the two parties.

No 10 has confirmed that Nick Clegg had been appointed Deputy Prime Minister, serving as one of five Liberal Democrat ministers in the new administration.

Other posts confirmed are George Osborne as Chancellor and William Hague as Foreign Secretary.

Liam Fox as Defence Secretary and Andrew Lansley as Health Secretary are also thought to have retained their shadow cabinet portfolios.

On the Liberal Democrat side it is thought that there will be jobs for Treasury spokesman Vince Cable and home affairs spokesman Chris Huhne, as well as a number of junior postings.

Details of the power-sharing agreement hammered out over five days of negotiations began to emerge in Westminster briefings.

Under the terms of the deal the UK will move to five-year fixed-term parliaments with the next election to be called on the first Thursday of May 2015.

Sources indicated that the parties have also agreed to a "significant acceleration" of efforts to reduce the deficit - including £6bn 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, while Liberal Democrat promises of a "mansion tax" on £2m-plus properties will also be abandoned.

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. Details of the programme for government - which so far only covers the most contentious areas between the two parties - emerged in late-night briefings in Whitehall as the new administration began to take shape.

Legislation setting in place the significant constitutional change could only be undone by an "enhanced majority" in Parliament.

Among Liberal Democrat priorities accepted by the Tory negotiating team was a "substantial increase" in personal tax allowances to benefit low and middle-income workers from April 2011. That will be paid for by keeping part of the planned National Insurance rise - the employee element - in place and an increase in capital gains tax on non-business assets.

Nick Clegg's party will also be granted a referendum on changing the Westminster voting system from first-past-the-post to Additional Vote. The Liberal Democrats will not be required to support proposals for a tax break for married couples - although the Tories remain hopeful it would be approved.

But they will sign up to a commitment not to join the European single currency and to legislation requiring a referendum on any proposed transfer of powers to the European Union, while the Conservatives will retain their promise of a cap on immigration and implement in full their welfare reform and school reform programmes.

In another area of significant disagreement - Trident nuclear missiles - the new joint administration will be committed to "the maintenance of Britain's nuclear deterrent" but the Liberal Democrats will be allowed to "continue to make the case for alternatives" and insist that the renewal of Trident be scrutinised to ensure it offers value for money.