The Government is "running scared" following indications that it is to focus on public services ahead of tax cuts in the next Budget, according to Labour Party leader Mr Ruairi Quinn.

After four years in office, he said, the Government was waking up to the fact that despite huge economic prosperity it would leave little of substance behind it, not least a health service in crisis.

He said that, despite four years of tax cuts and the money spent on them, people earning less than the minimum wage were still paying tax. "Had they delivered on that commitment instead of reducing capital taxes, there would be more money available now for services.

"Now we are being told that if we want a proper health service, there will have to be cuts across the board," Mr Quinn said yesterday.