Philip Jones identified this unusual fungus for me as a Leotia lubrica (Jelly Babies). He pointed out that under the microscope the spores are in an 'ascus' and not hanging from a 'basidium' as in typical toadstools. i.e. this belongs to the 'cup-fungi', an ascomycete. In this case the 'cup' has become inverted on top of the stipe giving it this distinctive appearance. My own observations confirm that the texture is very much like a jelly baby.
Photographed under a Sitka Spruce plantation on the Sarn Helen ridge.
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