Fire fighters leaders and employers are under pressure to reach agreement on the long-running dispute over pay and conditions.

On Friday both sides were meeting for a new round of talks aimed at reaching a compromise acceptable to both sides.

Without a deal, it appears increasingly likely that the government is prepared to impose its own settlement.

On Thursday John Prescott won support among MPs for the Fire Services Bill, though there was a limited backbench rebellion.

Prescott said that the legislation was necessary "in the public interest and to protect public safety".

The proposed law would give the deputy prime minister powers to set pay and conditions in England and Wales and direct fire authorities on the use and disposal of their facilities.

He said it was "a bill I would have preferred not to introduce" but confirmed that protracted negotiations had failed to produce an agreement.

Three pay offers and two months of talks at ACAS have failed to produce agreement between the FBU and fire service employers.

"We are therefore back to where we were last May," Prescott said, adding that any pay rise should be funded by reform of working practices.

The deputy prime minister said that the new powers would only be used "if no agreement is reached" in current negotiations.

He claimed there was "still a lot of room for manoeuvre and agreement".