U-turn by Labour to stay out of government

The Labour Party last night appeared to have abandoned plans to re-enter government, following a major internal backlash.

The climbdown follows a weekend of speculation the party was on the verge of finalising a deal, but senior party sources last night said Labour was unlikely to enter government.

Party leader and Tánaiste Joan Burton along with deputy leader Alan Kelly and Public Expenditure Minister Brendan Howlin last week met Taoiseach Enda Kenny.