David Cameron has left political talks in Northern Ireland conceding that no deal is possible at the moment.
The Prime Minister said he had tabled a financial package amounting to £1 billion but that would only be made available to the Executive if an agreement can be reached on outstanding disputes.
Many of the region's politicians are unhappy at the scale of the financial offer made, with some describing it as "derisory".
David Cameron has urged Northern Ireland's politicians strike a deal on outstanding disputes for the sake of the region's people.
The Prime Minister is in Belfast with Irish Taoiseach Enda Kenny to join negotiations with the five parties in the Northern Irish Executive.
As well as long-standing disputes over flags, parades and the legacy of the past, the parties in the power-sharing coalition are trying to reach consensus on budget problems facing Northern Ireland's institutions.
"We have got to demonstrate we can resolve these issues," the Prime Minister said outside Stormont House.
"The people inside this room will be discussing and talking about them but the people outside the room, they are the people that matter. They want to see their politicians deliver."
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