Stormont stalemate: Talks between government and parties are extended

Talks between the government and Northern Ireland's largest political parties over a new financial package have been extended.

The talks were due to end on Wednesday evening after a third day discussing a £2.5bn package.

But the Northern Ireland secretary said they would now continue.

He said the package was generous but that he was prepared to go back to the prime minister and see what more was possible.

The government offer, outlined on Monday, was dependent on reviving the power-sharing institutions.

DUP leader Sir Jeffrey Donaldson said they were "not there yet" in terms of reaching agreement on the return of the devolved institutions in Northern Ireland but that they are "actively engaged each day to move this forward".

Northern Ireland's devolved government collapsed in February 2022 after the DUP withdrew - it can only operate with the participation of both the largest parties in nationalism and unionism.

Parties have had three days of talks at Hillsborough Castle, centred around financial issues, with the UK government unveiling its financial package on Monday.

Separately, the DUP is holding talks with the government about returning to power-sharing government.

It withdrew in protest against post-Brexit trading arrangements between the region and Great Britain, known as the Irish Sea border.

The arrangements were part of the Northern Ireland Protocol, which was agreed in 2019 by the UK and European Union and later tweaked by the Windsor Framework.

The framework aimed to reduce checks on goods moving from Great Britain to Northern Ireland.

Earlier, Prime Minister Rishi Sunak said the government stood ready to legislate to "protect" Northern Ireland's place in the UK internal market.

He said such a move would sit alongside a deal to restore the Northern Ireland Executive and added the government was prepared to work "at pace" to achieve this.

His comments came in response to a question by Sir Jeffrey, who asked the government to amend the UK Internal Market Act to "guarantee and future-proof" Northern Ireland's access to the UK internal market "in all scenarios".

The DUP leader said unionists were concerned about "the need to remove the Irish Sea border" as it "disrupts the UK's internal market".

On Wednesday night, he dismissed any talk of choreography around his question, adding that he was interested in "results not choreography".

He said he welcomed the the clarity given by the prime minister on trade barriers between Northern Ireland and Great Britain, but added "we are not there yet" in terms of reaching agreement on the return of the devolved institutions in Northern Ireland.

Speaking after the finance talks on Wednesday, Mr Heaton-Harris thanked the parties "for their thorough and constructive engagement over the last three days".

He said the government had "outlined a fair and generous package which could assist a returning Executive to stabilise its finances and protect public services".

He added that a number of points have been raised during talks which required further clarification.

"We will be continuing our dialogue with the parties on these issues over the coming days, with the single focus of seeing the return of a locally elected and accountable devolved government," he said.

By Brendan Hughes, BBC News NI political reporter

The government has made similar pledges before, but the timing on this occasion will be seen as significant.

Rishi Sunak said the government stood ready to meet the DUP's call for legislation to protect Northern Ireland's place in the UK internal market.

But the prime minister tied this promise to a deal on restoring Stormont, saying both sit "alongside" each other.

He said all this can be done "at pace", suggesting the potential of a quick turnaround.

With the DUP having long called for legal assurances on the internal market, this exchange will be seen as careful political choreography - despite Sir Jeffrey's dismissals.

But will it be enough to persuade the DUP to end its blockade on power-sharing?

Mr Heaton-Harris met the leaders of the DUP, Sinn Féin the Alliance Party and the Ulster Unionist Party again on Wednesday evening to discuss the financial package.

The parties have said the proposed funding is not enough.

Ahead of the meeting on Wednesday evening, Sinn Féin leader Mary Lou McDonald said the process was reaching a "moment of truth".

She said a "positive response" was required from the Treasury and the DUP if Stormont was to be restored.

"The case for restoring power-sharing is unanswerable at this stage," she added.

Speaking after the meeting, Ulster Unionist leader Doug Beattie described the talks as positive, but said he was frustrated momentum could be lost.

Meanwhile Ireland's Foreign Minister Micheál Martin and Foreign Secretary Lord Cameron met in Dublin.

Mr Martin, who is also tánaiste (Irish deputy prime minister) said the Irish government was hopeful that the Northern Ireland Executive could be restored "in the next short while".

The two men discussed ongoing efforts to get the power-sharing institutions restored, British-Irish relations and other global issues.

Mr Martin described it as a "warm" meeting.

He said he believed "a lot of work has been done" between the UK government and the DUP.

"We await the outcome of this week in relation to talks on the financial package which are separate to more specific ones on Windsor - so the DUP will have to make a decision, but from what I've seen, progress has been made," he said.

He also said the "challenging budgetary situation" in Northern Ireland must be addressed.