Labour TDs flag rejection of public sector pay cuts

Fears of a backlash fuelled by austerity fatigue gripped Labour as backbenchers signalled they would not vote for across-the-board public sector pay cuts.

Energy Minister Pat Rabbitte said a “tipping point” was at hand as he backed cabinet colleague Joan Burton’s assertion that austerity’s limits had been reached.

As Ms Burton’s remark was interpreted by some Fine Gael ministers as a sign Labour had “lost its nerve” on deficit reduction, dealing with the Croke Park II no vote provoked more tensions within the Coalition.