Fine Gael has rowed back on its plan to abolish Universal Social Charge (USC).

While the party says it still intends to see the end of the hated tax, it has told Independents it will "seek Oireachtas support to continue to phase out the USC as part of a wider medium-term income tax reform plan".

The statement. Contained in documents circulated during today’s government formation talks, is a significant departure from its previous stance.

The pledge to abolish USC by 2021 was a key component of the Fine Gael election platform.

Other parties such as Fianna Fail have said they will keep the tax in place on salaries over €80,000.

Sinn Féin, meanwhile, has no plans to abolish the tax, introduced by Fianna Fáil as an emergency measure during the recession.

Online Editors