Following the break down of pay talks, the armed forces have been put on standby to cover any industrial action by the Fire Brigades Union.

Since the collapse of negotiations, the union has said it will now begin moves towards holding a strike ballot, which would see the first possible day of action set for September 7.

The FBU and the government clashed earlier in the week following the latest breakdown in the long running pay talks.

Army chiefs are already dealing with major operations in Iraq, and also face the possibility of a deployment to Sudan.

But ministers believe troops did a good job in covering for striking fire fighters when they were last called upon in 2002 and early last year.

Modernisation

Local government employers and the FBU failed to reach agreement on Monday in a move which could lead to fresh industrial unrest.

The latest dispute centres partly on the Audit Commission's move to verify that the modernisation of local fire brigades is underway.

If it agreed that changes were being implemented then the fire fighters would have received a 3.5 per cent pay rise outstanding since last November and 4.2 per cent from July 1.

However, there was confusion about the Commission's report, with the FBU saying it was not an obstacle to a deal.

The Local Government Association, however, said bank holidays were the key sticking point.

Sir Sandy Bruce-Lockhart, LGA chairman, said: "The reason we couldn't reach a deal with the FBU was simply down to the sticking point of bank holiday working.

"We are very close to an agreement.  The sticking point is bank holiday working - let us hear publicly the FBU's position on that, not a smokescreen of wild allegations or personal attacks."

According to the FBU, the employers' delegation was packed with a "wrecking crew" under orders from local government minister Nick Raynsford to block the deal.

"A clear agreement was reached. A government inspired wrecking crew from London has been sent in to destroy this deal and they have done it," said FBU assistant general secretary Mike Fordham.

"Nick Raynsford has stepped in behind the scenes to wreck this deal. He does not want agreement on any terms, he only wants confrontation."

However, those claims were rejected by the Office of Deputy Prime Minister.

"It is nonsense for the FBU to say that government has intervened in any way at all," said a departmental spokesman.