Cameron: No Northern Ireland deal possible at the moment

David Cameron and Taoiseach Enda Kenny have left talks in Belfast aimed at agreeing a financial settlement for the future funding of the power-sharing Executive.

The pair spent last night discussing a range of issues that have caused the Executive to fail to reach an agreement over proposed funding cuts as part of the government's welfare reforms. Items discussed included flags, parades, how Northern Ireland should deal with the past and the reform of the Assembly.

Unionist and Republican politicians in Northern Ireland refused to sign up to Cameron's package of reforms.

ITV News Correspondent Martin Geissler reports from Belfast:

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".

Sinn Féin leader Gerry Adams has criticised talks that have failed to reach an agreement to rescue the Northern Ireland executive from a budgetary black hole.

David Cameron and his Irish counterpart Taoiseach Enda Kenny said good progress was made but deal has not been possible.

The Prime Minister has proposed a potential financial package for consideration by Northern Ireland politicians involved in marathon cross-party talks, Downing Street sources have said.

The package was tabled alongside an amended Heads of Agreement document - outlining the state of negotiations on all of the issues - presented by David Cameron and Irish Taoiseach Enda Kenny in the early hours of this morning. Talks will resume today, before Mr Cameron leaves Northern Ireland earlier than planned at 10am.

David Cameron is in Belfast for talks with Northern Ireland's political leaders to try to save Stormont's power-sharing administration.

His Irish counterpart Enda Kenny is also there for talks that are expected to last into tomorrow as there appears to be little sign of a breakthrough.

ITV News Correspondent Martin Geissler reports:

David Cameron is in Belfast for talks with Northern Irish politicians over resolving long-running disputes in the region.

The issues at stake include flying of flags, parades and the legacy of the past.

The risks of failure are potentially high - with the possibility that the power-sharing Northern Ireland Executive could fall apart.

ITV News Correspondent Martin Geissler reports.

Read: McGuinness calls for extra funding for Northern Ireland

Deputy First Minister Martin McGuinness has said the British government must provide more money for Northern Ireland because it faces "special problems" not shared by other parts of the UK.

The veteran Sinn Fein politician said all five parties in the Northern Ireland Executive agreed that the region needs more funding.

Speaking outside Stormont House ahead of multi-party talks, Mr McGuinness said:

Read: PM: Northern Irish people 'want politicians to deliver'

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."