Northern Ireland Secretary Sir Chris Bryant has instructed officials to consider “contingency plans” around a budget for the region.
In a letter sent to Finance Minister John O’Dowd, Sir Chris acknowledged the ongoing situation at Drumcree but said “the time is already long past when the Executive should have agreed a budget for this financial year”.
The UK Government has made a financial offer slightly above £1.5 billion over the next three years in an effort to assist with balancing Stormont’s budget.

Stormont departments have been operating without a budget since the beginning of the current financial year.
Ministers in the devolved powersharing Executive 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.
The Northern Ireland Secretary had set Thursday as the date for Stormont parties to respond to the Government’s offer, but was encouraged to delay the deadline because of the ongoing Drumcree crisis.
In his letter, seen by the Press Association, Sir Chris said: “The ongoing situation at Drumcree and the Garvaghy Road has caused a significant level of uncertainty and concern within the local community and Northern Ireland more widely.
“I appreciate the effect this has had on Executive parties.

“However, the time is already long past when the Executive should have agreed a budget for this financial year.
“I cannot therefore countenance further delays and have already instructed my officials to consider contingency plans.”
Sir Chris said he wanted to work closely with Executive parties.
He added: “I am directly involved in trying to find a solution to the situation in Drumcree.
“I would encourage you to get back to me with any suggestions on a way forward on the budget as soon as possible, but I hope you will understand that I have to prepare for all eventualities.
“I would welcome feedback on any points of agreement the Executive has reached on the Government’s offer.”
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