The announcement came as negotiations between employers and the Fire Brigades Union were resuming today. But without more money on the table - and with the union having already rejected an 11.3% rise over two years - fears grew that an eight-day strike scheduled to begin on Friday morning will go ahead.
The prime minister's official spokesman said the government hoped any resumed negotiations would be "constructive", but he warned: "The public spending envelope is sealed."
Public spending ceilings were set out last July and fixed, said the spokesman, who again stressed that any extra pay for firefighters must be linked to modernisation. He once more urged the union not to go ahead with Friday's strike.
Local authority employers and the union's executive were holding separate meetings in central London this morning before a possible resumption of negotiations later today.
John Ransford, one of the local authority negotiators, said he hoped the union would agree to resume discussions. "We have a proposal on the table and we want to negotiate," he said. "I don't think the public wants, deserves or can cope with an eight-day strike. There is no need for it."
Mr Ransford said there was a "substantial proposal" on the table, adding: "Let's talk about it."
There had been growing speculation that an offer of around 16% could be enough to avert the next strike, but this seems less likely today.
The union leaders were meeting at an undisclosed location, but one official made it clear that even if the offer was increased to 16 per cent, it would not be enough for Friday's strike to be called off.
As the deadline for the new strike drew nearer, the chief of defence staff, Admiral Sir Michael Boyce, said he had advised ministers that troops should not be asked to cross the firefighters' picket lines. During last week's 48-hour strike, the military used ageing green goddesses to provide emergency cover, leading to calls for the government to order troops to use the modern equipment lying idle in fire stations.
Sir Michael said he was "extremely concerned" at the impact the strike was having on the armed forces.
The defence secretary, Geoff Hoon, also made clear that it would be up to the police to cross the picket lines if a decision to commandeer modern fire engines was made. "If we do have to take these difficult decisions in relation to the red fire engines, that has to be done by the civilian authorities responsible," he said.
