Stormont executive in 'substantive negotiation' with UK government over budget deadlock

The Stormont executive is now in a "substantive negotiation" with the government on additional money to break the budget deadlock, Finance Minister John O'Dowd has said.

He was speaking after ministers met the Northern Ireland Secretary Sir Chris Bryant on Friday morning as an increased offer was made to the executive of £1.5bn over the next three years.

O'Dowd said he did not believe that the talks need to go on for "weeks", adding that he and others had been pressing the Treasury for months to come to the table.

On Monday, Sir Chris visited Stormont and made an initial offer of £350m per year over the same period to help stabilise the executive's finances - a £1.1bn package.

Executive parties rejected that and said the government would need to increase its contribution in order for Stormont to balance its books this year.

It is believed that the majority of the money for each year would be available to the executive for day-to-day (resource) spending, with some money required to be set aside for longer-term (capital) projects.

O'Dowd refused to be drawn on the specific details of the offer, but said he had "no doubt" ministers would still face challenges in managing their departmental finances even if a settlement is reached.

"There have been financial challenges in the past... it was pointed out to the government then that there needed to be an annual, baselined funding settlement to the executive," he told BBC Radio Ulster's Talkback programme on Friday.

O'Dowd and other Stormont parties have repeatedly said Northern Ireland would have an additional £1bn to £3bn a year to spend if they were funded in the same way as Wales or Scotland.

He said it was incumbent upon the government to provide Stormont with finances to develop a multi-year plan.

Earlier, Stormont's Education Minister Paul Givan said there had been revised financial offer from the government on Friday, but "there is a significant gap between what is now being offered and where we need to get to".

"If the Secretary of State believes that he can just say, 'this is all you're getting', he is asking the impossible of the executive," the minister told BBC Radio Ulster's The Nolan Show.

Givan added that, if what is being asked of Stormont is impossible to deliver, the executive will have have to ask the Treasury for more money by the end of the financial year.

He said that, if the Treasury decline the request, Stormont is in "uncharted territory".

"A budget that is inadequate means cuts," he warned.