UK government declines to increase financial help for Stormont

The government has declined to increase its offer of financial help to the Northern Ireland Executive beyond what it put on the table two weeks ago.

Earlier this month, the Secretary of State Sir Chris Bryant made an offer of a financial package worth about £1.5bn over the next three years - that was a rise from an initial proposal of £1.1bn.

But executive parties said it did not go far enough and have argued that significant gaps remain before they can agree to a deal that would allow them to set a budget.

Some six months have passed since the executive should have set a budget for this financial year.

Executive parties have been in negotiations with the government in a bid to get increased funding.

While the government's offer has not changed, Sir Chris spoke to executive parties on Thursday afternoon.

He is expecting to hear back from them next week as to whether they will accept what is on the table.

"I cannot emphasise enough how tight the financial situation is and the pressure on the public finances," Bryant said.

He said the £1.5bn "gives the executive the chance to manage its immediate pressures, and move towards a more sustainable footing".

"Not just this, it supports them in delivering much-needed transformation of public services, and to invest in social housing," he added.

He urged politicians to get together and work out a balanced budget as a "matter of urgency based on these figures".

However Finance Minister John O'Dowd previously said the current published financial pressures facing Stormont departments were around £1.6bn, adding: "So we have a bit to go."

It is not clear what will happen if the executive refuses to accept the offer from the government.

Sir Chris could seek to pass a budget bill for the executive via Westminster, but this would prove a contentious move in a period of devolution.

The offer on the table from the government includes £450m extra for day-to-day pressures this year, as well as an additional £400m in 2027/28 and 2028/29.