Heaton-Harris to set out next steps as Hillsborough discussions continue

Northern Ireland's political parties and the Secretary of State are to meet again on Tuesday as discussions around a £2.5bn financial package contingent on Stormont's return continue.

Momentum on talks has slowed after the DUP confirmed on Monday that no deal would be reached before Christmas.

The Secretary of State, is expected to outline next steps on the fifth day of talks at Hillsborough Castle.

The government was hoping an agreement on power-sharing could be reached before parliamentary recess.

The DUP have insisted that they "will be condition led not calendar led".

The money on offer includes a lump sum to settle public sector pay disputes and money to sustain Northern Ireland's public services which remain under pressure.

Public sector workers have expressed their frustration with further transport walk outs to go ahead on Friday, 22 December and a full day of strike action announced by teaching staff for Thursday,18 January.

Northern Ireland's business community has also urged the parties to maintain momentum and press forward to agree a deal to restore a fully funded devolved government.

In a joint letter to the Secretary of State and party leaders, the Northern Ireland Business Alliance called for a new fiscal framework to enable public sector transformation and catalyse economic growth as well as an independent review public spending.

They said: “The coming days are crucial. If a restored Executive can act soon, the prize could not only be stabilising public services, but a genuine catalyst for growth which supports business, jobs and economic prosperity for the benefit of all."

Updates to follow as party leaders return to Hillsborough Castle on Tuesday for round-table talks with Secretary of State Chris Heaton-Harris.

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know.