PRESIDENT Martin Vizcarra has suffered another setback as teachers announced strike action in Peru after government talks aimed at heading off a dispute over pay and conditions collapsed 

Mr Vizcarra’s administration has been beset by growing unrest since he replaced Pedro Pablo Kuczynski in March after the former Wall Street banker was implicated in a corruption scandal.

Demonstrations over fuel prices saw towns and cities across southern Peru close down last month, with roads blocked and transport hubs shut due to strike action.

The country’s Finance Minister David Tuesta resigned on Monday as lorry drivers called off further action against rising fuel prices, prompting Mr Vizcarra to shift attention away from the unpopular tax rises to collecting unpaid corporation tax owed by big business.

He has been replaced by neoliberal technocrat Carlos Oliva who was the vice-minister of finance under the 2011-2016 government of Ollanta Humala.

However that has not improved Mr Vizcarra’s approval ratings, which have plummeted nine points to 45 per cent since May.

The teachers are set to walk out on June 18.