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Northern Ireland Secretary Hilary Benn has told Stormont ministers they must meet him “halfway” to resolve the dispute over Executive funding.

Devolved ministers in Northern Ireland have yet to agree a budget for the current financial year and have insisted they need more financial support from the Treasury to plug an estimated £1 billion hole in their balance sheet and deliver spending plans that avoid dramatic cuts to public services.

On Thursday, DUP deputy First Minister Emma Little-Pengelly warned that it would be an “impossibility” to agree a balanced budget this year without inflicting “devastating” cuts if more support from the UK Government was not forthcoming.

Sinn Fein Finance Minister John O’Dowd claimed the Government’s approach to Stormont’s financial difficulties has become characterised by “drift” as he suggested ministers in London were preoccupied by the leadership wrangles within the Labour Party.

Secretary of State Mr Benn rejected those claims and instead insisted the onus was on Executive ministers to develop a plan to stabilise Stormont’s finances. He said the Treasury needed more information on why the Executive was facing such a large hole in its budget plans in 2026/27.

The Labour MP was speaking after he and Parliamentary Under Secretary of State Matthew Patrick joined Ms Little-Pengelly, Mr O’Dowd and Health Minister Mike Nesbitt on a visit to Carryduff pharmacy and the adjacent Carryduff Surgery.

The visit came after an e-pharmacy initiative to digitise pharmacy services in Northern Ireland was unveiled as one of the projects to be funded through the UK Government’s £235 million transformation fund, which was provided by the Treasury as part of the deal that saw the restoration of the Northern Ireland Executive in 2024 after a two-year impasse.

Mr Benn rejected any suggestion the UK Government was the reason a budget had not yet been agreed by Stormont ministers.

“Well, I don’t think you could describe a record budget settlement in the Spending Review last summer, the extra money that has come since then, the £235 million in public services transformation funding that we’re here in part to celebrate today as drift or a lack of urgency,” he said.

“It shows that the Government is providing support, but I do need the Executive to meet me halfway. And it’s not unreasonable. It’s a point I’ve made before, and I will reiterate, it’s not unreasonable to say, what is your plan to try and achieve fiscal sustainability?

“Why are the budget pressures, the overspend that is being described, appearing to go up and up? What action is being taken to deal with that? What is the nature of the pressures? And the new Chief Secretary, Lucy Rigby, and myself, we need further information and a sign that the Northern Ireland Executive is preparing those details as to where these pressures come from.”

On the question of whether the Executive was willing to raise more revenue itself, Mr Benn said all governments “face difficult choices”.

He added: “I am determined to argue Northern Ireland’s case, but I need help from the Executive, and it needs to provide further information about how it intends to get to fiscal sustainability.”

Ms Little-Pengelly said there was political consensus with the Executive that more support was needed from the Government.

“I have made clear time and time again that the concern here is not a party political one within the Executive, it’s not a party political disagreement within the Executive,” she said.

“We are all in agreement that there is approximately £1 billion of pressure that is very much within health, within education, within justice, but of course, all departments are feeling that pressure.

“There’s absolutely no way, it is an impossibility to either cut services or raise revenue, or to have a combination of both, to make up that £1 billion within this financial year.

“The consequences of trying to do so would be devastating to our public services, it would be punitive to our citizens across Northern Ireland.

“I have said many times I am not somebody who buys into begging bold politics. What I am saying to the UK Government is work with us, work with us on transformation, work with us in terms of investing to make our system more efficient, we will do our part.”

She added: “This is an appeal to the UK government to listen to what we are saying. It is logical. It is reasonable. We want to work in partnership, and the quicker that they actually get to the point of working constructively with us on that, then the sooner we will have a budget.”

Mr O’Dowd said the UK Government needed to “refocus their minds” on Northern Ireland.

“There’s no drift on behalf of the Executive in relation to these discussions around getting a budget,” he said. “There has been, in my opinion, a drift with the British government, most likely as a result of the ongoing difficulties within the Labour Party, and I’ve said directly to the Secretary of State that they need to refocus their minds, get attention back on the job that needs to be done, and engage properly with the Executive in relation to the budget.

“It’s beyond refute at this stage that Wales is funded £1 billion above its need, Scotland is funded £3 billion annually above its need. Imagine if we, as Executive ministers, had those resources available, what we could do with those improving public services and the economy.

“When you give us the tools to do a job, we do the job, such as being explained here today and this is another example of it (e-pharmacy initiative). The responsibility is on the Government for a fair tax return on the people who pay taxes here, to fund us properly, allow the Executive to do its job, and the people can hold us to account on what they think of that job.”