Northern Ireland ministers insist they are unable to strike a budget for the current financial year without additional Treasury support.
The Government is understood to have upped a financial offer to Stormont ministers to £1.5 billion in a bid to break an impasse over the devolved region’s budget.
The Treasury has offered an additional £500 million a year over three years, the Press Association understands.
This is an increase on the £350 million the Government initially tabled earlier this week.
The move came as Northern Ireland Secretary Sir Chris Bryant held further talks with senior Northern Ireland politicians on Friday.
Stormont ministers have insisted they cannot strike a budget for 2026/27 without additional financial support from Westminster.
Devolved departments are currently allowed to spend up to 95% of last year’s funding in the absence of ministers agreeing the budget.
Finance minister John O’Dowd declined to elaborate on the details of the new Treasury offer.
But he insisted negotiations on the budget had not concluded.
“The talks are continuing,” said the Sinn Féin minister.
“We’re involved in live negotiations with the British government around this matter. These discussions should have started months ago, and it’s unfortunate that we have been delayed as a result of shadowboxing, in my opinion.
“But now we’re into what I would describe as substantive negotiations and discussions and I will continue, as my party will continue, to engage in those with mindset of reaching a resolution.”
Mr O’Dowd added: “It doesn’t need to go on for weeks. As I said, it should have been resolved a long time ago. All the facts are known. All the figures are known.
“And what we have to get the British Government in position is that they have to accept that they have been underfunding this place for years, and that when you compare us to Scotland and Wales, that we are underfunded in the region between £1 billion and £3 billion per annum, and that has been confirmed by the independent (NI) Fiscal Council.
“So, therefore, there is a significant piece of work for the Government – the British Government – to do to bring the Executive into position where we can properly resource our public services and support our economy.”
