Republican unease pushes US nearer ‘cliff’

Washington’s last-minute scramble to step back from a “fiscal cliff” ran into trouble last night as Republicans in the House of Representatives balked at a deal to avert a budget crisis.

Republican leaders in the House said they might try to change the bill approved by the Senate which voted to raise taxes on the wealthy in a late-night show of unity.

That would set up a high-stakes game of chicken between the two chambers and risk a stinging rebuke from financial markets.