Irish Water changes may wash out plans to scrap the Universal Social Charge

Plans to abolish the universal social charge will have to be delayed or abandoned to fund changes to Irish Water, it has emerged.

Government formation discussions between Fine Gael and Fianna Fáil broke up last night without resolution on the future of the utility.

Government sources have said that limited extra spending power means plans by both parties to reduce and abandon the USC would have to be forgone to fund the changes being proposed in relation to water charges.