Budget cuts to be less than €3.1bn

Next month’s budget could be around €500m less painful than expected as Coalition parties move to ease the taxes and cuts package to around €2.6bn.

Fine Gael and Labour ministers have conceded that political realities mean the previously stated €3.1bn target is not possible.

The bid to head-off a bitter public backlash came as the Labour leadership denied it was considering again postponing its party conference amid concern it could be used as a platform to attack Tánaiste Eamon Gilmore.